Volkswagen To Build 7 Seat SUV At Chattanooga Assembly Plant

Volkswagen AG is nearing a decision to pick its Chattanooga, Tennessee plant over a site in Mexico to build a new seven-seater crossover vehicle for the North American market, a German newspaper reported on Thursday.

The state of Tennessee is offering tax breaks, staff training, free land and infrastructure upgrades worth about $300 million in total, giving it a clear edge over Puebla, Mexico, daily Frankfurter Allgemeine Zeitung cited company sources as saying.
VW declined to comment.

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MattDarringer - 6/23/2014 12:03:47 PM

+5 Boost

VW is nearing a decision to build the Tarshunda (you know it will have some stupid name like that) crossover so that they can get into a market segment that they needed to be in 10 years ago. Let's hope they can build it with better quality and reliability than the Jetta and Passat.

VW's management of product for the US profoundly stupid. It's nonsense like this that makes dealers livid. Why does it take so long for VW to give a damn? Dealers want the Up to compete against the Mirage/Spark. No dice. Dealers want the Polo to battle the Fit/Fiesta. No dice. Dealers want "gotta have" styling on the Passat and Jetta. No dice. Dealers want a VW "Escape" and a VW "Avalon". No dice. Dealers want the Amarok. No dice.

But VW has time to waste time thinking about thinking about making a decision about thinking about making a decision.

chewy - 6/24/2014 2:05:30 AM

+1 Boost

VW struggles understanding and caring about the US market but some economic realities play a role. VW can't make money on anything sold in the US and built in Europe until I am guessing the 30,000 price point.

The 7 seater is a late but good first step. Hopefully it loses as little as possible on the road to production.

85bmw745i - 6/26/2014 8:16:05 PM

+1 Boost

couldn't agree more. If VW would bring to market what we need VW would likely make a huge impact in the U.S. market in a few years. Give this thing a TDI and air suspension and I'll trade my LR3 in the day it comes out.