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VW to Add Second SUV at Tennessee Plant

Volkswagen AG says it will add a second, smaller SUV/crossover at its assembly plant in Chattanooga, Tenn. But it didn't indicate when.

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Volkswagen AG says it will add a second, smaller SUV/crossover at its assembly plant in Chattanooga, Tenn. But it didn't indicate when.

The Tennessee facility began building its first SUV, the seven-seat Atlas that goes on sale in May, earlier this year. VW Group of America CEO Hinrich Woebcken tells reporters the unnamed new model will be a five-seater.

SUVs account for almost 40% of passenger vehicle sales in the U.S. today. Woebcken says VW want to shift its image in the market from that of a sedan and hatchback seller to a broader “family friendly” company that offers multiple crossover models.

VW’s current U.S. lineup of crossovers comprises the new Atlas and the German-built five-passenger Tiguan. Those two models will be joined by a Mexico-sourced three-row version of the Tiguan later this year.

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