Report – Volkswagen could pick US plant for new SUV image

A report coming from a German newspaper hints at Volkswagen’s board soon reaching a decision for their new US seven-seater SUV, with its production favored in the automaker’s US plant.

With a tumultuous recent history – involving a failed attempt by the UAW to organize the workers at VW AG’s Chattanooga, Tennessee facility – it looks like the plant could catch the production of the new SUV, winning the bid over a Mexico plant.

Daily Frankfurter Allgemeine Zeitung, which cited persons inside the company, said the US plant has the edge over the Puebla, Mexico, site because of the renewed proposition from the state of Tennessee – which is offering $300 million worth of tax breaks, staff training, free land and infrastructure upgrades.

Back in January, Reuters also reported, citing a source close to the matter, the German automaker favors the sole US plant over the Mexican site, where the automaker builds its Golf compact model.
Volkswagen, at the start of 2014, revealed plans to introduce a US bound sport utility vehicle, specifically designed to cater to American tastes, in order to take advantage of the rising SUV sales in the region and to try to uplift the brand – which in recent years has suffered from continuously decreasing sales.

Via Reuters