March 20 (UPI) — Volkswagen of America announced Monday it will manufacture a new sport utility vehicle at an assembly plant in Tennessee.
The U.S. branch of the German automaker said it will invest $340 million to bring a new five-passenger version of its Atlas SUV into production at its factory in Chattanooga.
“The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled, five-passenger SUV,” President and CEO of Volkswagen of America Hinrich J. Woebcken said. “We are not only committed to this market, we are committed to our U.S. manufacturing home in Chattanooga, Tennessee.”
Volkswagen previously invested about $900 million to expand the plant for production of prior models of the Atlas.
The five-passenger Atlas will be the third model assembled at the Chattanooga factory, which also manufactures the mid-size Passat.
“During my time as Governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today — a thriving U.S. manufacturing operation that can produce three models, and counting,” Tennessee Gov. Bill Haslam said.
A concept version of the five-passenger SUV will be unveiled at the 2018 New York International Auto Show, the company said.