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Volkswagen Midsize Crossover SUV to be Built in U.S.A.

Volkswagen Midsize Crossover SUV to be Built in U.S.A.

By Jeff Youngs,

Volkswagen has announced that it will spend $600 million and create 2,000 jobs in the Chattanooga, Tennessee, area as it prepares to launch a new midsize, 7-passenger crossover SUV. The new SUV, based upon the CrossBlue concept vehicle, will share an assembly line with the Volkswagen Passat midsize family sedan.

"The United States of America is and will remain one of the most important markets for Volkswagen. With the midsize SUV...the focus is on the wishes of the U.S. customer. The Volkswagen brand is going on the attack again in America," said Martin Winterkorn, chairman of the board of management of Volkswagen AG.

Michael Horn, president and CEO Volkswagen Group of America, added: "The Chattanooga-built midsize SUV will allow us to fulfill the wishes of our dealer network, bringing new customers to our showrooms and additional growth for the brand. We are eager to be entering this growing vehicle segment with a world-class, 7-passenger SUV from Volkswagen."

Volkswagen sales have steadily declined this year while competitors are enjoying robust growth. The midsize crossover SUV segment is among the most popular in America, and Volkswagen does not offer one. The new 3-row, 7-passenger crossover SUV that starts rolling off a Chattanooga assembly line in 2016 is expected to contribute significantly to Volkswagen's goal of selling 800,000 vehicles annually in the United States.

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