VW Readies Second SUV for U.S. Plant

Volkswagen AG is spending $340 million to add a two-row, five-passenger variant of its three-row, seven-passenger Atlas SUV at its factory in Chattanooga, Tenn. The new model, expected to go into production next year, will be unveiled in pre-production form next week at the New York auto show. The SUV will feature a new name, sporty styling and rearward sloping roofline.

Both versions of the Atlas ride on VW’s “MQB” platform. The same platform carries most of the other models VW sells in the U.S., including the Passat midsize sedan built at the Chattanooga facility.

VW notes that the 5-seater SUV program adds job security but no additional positions at the plant. The company adds that its investment was not bolstered with local tax breaks or other incentives.