New VW Crossover to be Built in Chattanooga

We know that a new seven-seat crossover is on its way from Volkswagen, and now it seems that the mystery of where it will be built has been solved.

According to Reuters, VW is nearing a decision to choose its plant in Chattanooga, Tennessee to build the crossover, rather than the company’s new facility in Puebla, Mexico.

Tennessee is offering a lot of incentives to make sure that VW chooses the state, including tax breaks, free land and infrastructure upgrades worth up to $300 million.

SEE ALSO: Seven-seat Crossover from VW Coming to America in 2016

An attempt to save falling sales in North America, the new crossover should launch sometime next year as a 2016 model. The brand has already offered us a glimpse of the new crossover with the CrossBlue Concept (picture above), which was motivated by a plug-in hybrid diesel power train.

Volkswagen’s U.S. deliveries fell by seven percent in 2013 as a push into the midsize car market didn’t pay off. The new crossover, which may be only be sold in North America, is showing VW’s commitment to the North American market.

[Source: Reuters]

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