Volkswagen will add a mid-sized sport-utility vehicle in the U.S. and probably produce it in Chattanooga, according to a Bloomberg report on Friday.
Officials who asked not to be identified before the official announcement said the Chattanooga factory is favored over the plant in Puebla, Mexico, to build the SUV for North American customers.
The local $1 billion factory began operations in 2011 producing the Passat sedan. The plant has the production capacity of 150,000 vehicles, but to due to 2013 sales, produced 109,652 cars.
One of the people reported the Chattanooga site could be ramped up to 250,000 vehicles annually should VW assign it to make the SUV.