Volkswagen AG to develop a new five-passenger SUV at Tennessee

Automotive giant Volkswagen AG has decided to invest nearly USD 340 million to develop a new SUV at its Tennessee unit in the U.S. to fulfill the escalating demand for the brand. According to Fox Business, the firm has already provided funds worth USD 900 million to its Tennessee unit for increasing the manufacture of Atlas, a three-row sport utility vehicle. Now, it is being speculated that VW will develop a five-passenger sports utility vehicle branded as a part of the firm’s Atlas family.

VW’s new model version is likely to be launched next week at the New York International Auto Show. As per the Governor of Tennessee, Bill Haslam, Volkswagen in Chattanooga has expanded its business from being a sole automobile manufacturer to a leading U.S. vehicle manufacturer developing nearly three vehicle models.

The present declaration is likely to boost the growth prospects of the U.S. automotive sector at a time when it is experiencing the impact of the tariffs levied by the U.S. government on raw material such as steel & aluminum imported from overseas. Some of Volkswagen’s key officials have stated that the SUVs contributed to nearly 54% of its overall sales in February this year. In 2017, during the launch of a new seven-passenger Atlas SUV, the firm had also revealed its plans of introducing a new Tiguan SUV in 2018.

Experts state that the German automobile manufacturer is keen on restoring its tarnished image in the U.S. after it was found guilty of cheating in the diesel emission tests held by the country’s authoritative bodies in 2015. As per reliable sources, the new SUV, a variant of Atlas, is likely to be designed and manufactured in the U.S.

Hinrich J. Woebcken, the CEO of VW Group of America, has proclaimed that the Atlas SUV model is a unique brand of VW across the SUV sector. He also further stated that the production of a five-passenger SUV is likely to add value to the growing SUV portfolio of the firm.