Volkswagen officials announced Monday that they will build a new five-passenger SUV at the Chattanooga plant at the Enterprise South Industrial Park.
Governor Bill Haslam was among those on hand for the announcement.
It will be a variant of the seven-passenger Atlas that is already under production here.
Like the Atlas, the new model will be designed and engineered for the American market.
VW will invest approximately $340 million to bring the new model to market.
The plant also produces the Passat, which began production in 2011, and the Atlas, which went on sale in 2017.
Senator Bob Corker said, “Following a collective effort by so many in our community and state to bring a major auto manufacturer to Enterprise South, one of the most meaningful days in my public service career occurred nearly ten years ago when I received the call that Volkswagen had chosen Chattanooga.
“And over the years, we have worked hand in hand with Volkswagen leadership in Germany and our state officials to ensure the company would continue to thrive in our city. This important partnership has benefited thousands of families and generated extensive economic activity in surrounding communities while solidifying Tennessee as the premier location for automobile manufacturing. I am thrilled to see Volkswagen realizing its full potential and congratulate the hardworking employees on their continued success.”