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VW’s Tennessee Waltz; German Maker to Build SUV in Chattanooga

Volkswagen will invest about $900 million to build a mid-sized SUV at its plant in Tennessee, nearly doubling the factory's workforce. But the decision is not related to the workers' vote five months ago to reject representation by the United Auto Workers union, the German automaker said. VW chose to build the seven-passenger, three-row SUV at its plant in Chattanooga, instead of at its facility in Puebla, Mexico. The decision means that Volkswagen will create up to 2,000 jobs at a plant that now employs almost 2,500 people. VW officials would only say unit production of the SUV would be in the six-figure range. It will be sold in North America and other markets, and built on the same vehicle platform as the Passat. From 2014 to 2018, VW will invest more than $7 billion in the United States and Mexico.

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Volkswagen sides with the unions 18:09

IN DEPTH

- Reuters