A new seven-seat SUV concept will be revealed at the 2013 Detroit auto show and will be produced at the Chattanooga plant, according to AutoWeek.
The article quoted senior Volkswagen officials.
It says the new SUV will launch in 2014 and "rival the Toyota Highlander, Ford Edge, Chevrolet Equinox and Honda Pilot."
The article says the new SUV will give an alternative to the Tiguan and Touareg.
It says it is expected to come in both gas and diesel models.
Volkswagen has set aside a large tract adjacent to its plant at the Enterprise South Industrial Park.
The site is being readied so that VW could double its Chattanooga capacity.
Production of the Passat sedan at Chattanooga has been highly successful, officials said.