Volkswagen Plans US-Only SUV to Be Built in Chattanooga
Volkswagen is considering a new, larger SUV for the US market, positioned between the Tiguan and Touareg, with production likely at its Tennessee plant.
Volkswagen is preparing to launch a new sport utility vehicle tailored specifically for the US market, with production under consideration for its Chattanooga, Tennessee plant. According to a report from Financial Times Deutschland, the new SUV would be larger than the Tiguan but positioned below the Touareg in both size and price, targeting American buyers seeking more space without the premium cost.
A gap between Tiguan and Touareg
The proposed SUV is designed to fill a space in Volkswagen's American line-up, offering more interior room than the compact Tiguan while avoiding the higher price bracket of the Touareg. This segment is a key battleground in the US, where family buyers often favour mid-size crossovers with three rows of seating. Pricing is expected to come in below the Touareg, which at the time was Volkswagen's most expensive SUV in the US market.
No official details on specifications, powertrains or final design have been released by Volkswagen. The company declined to comment directly on the report, but Jonathan Browning, then CEO of Volkswagen of America, acknowledged that such a model would be well-suited to American tastes and would fit the brand's US ambitions.
Chattanooga plant central to US expansion
Volkswagen's Chattanooga factory, which began production with the US-market Passat, is viewed as the likely site for the new SUV. The plant had a projected annual capacity of 150,000 vehicles and was a key part of Volkswagen's plan to expand its presence in North America. Building the new SUV locally would allow Volkswagen to avoid import tariffs and react more quickly to shifts in US demand.
The decision to develop a US-only SUV aligns with Volkswagen's stated objective of raising US sales to over one million vehicles a year by 2018, aiming for a six percent market share for the group. At the time, Volkswagen was also expanding its US dealer network and had seen sales growth of over 40 percent in November 2011.
Timing and market positioning
According to the German report, Volkswagen was targeting a market launch in 2015. The move would place Volkswagen in direct competition with established three-row SUVs from US and Japanese brands, a segment where the company had previously lacked a dedicated model. The strategy also followed the trend of other European manufacturers developing larger crossovers for the American market, as seen with brands like Maserati and Lamborghini developing their own SUVs for specific regions (seeNew Lamborghini SUV for China).
No formal announcement had been made by Volkswagen at the time of reporting, but the company's US executives indicated that a mid-size SUV would be a logical addition to the line-up. The final decision on production and launch timing was expected to follow internal feasibility studies and market analysis.
What it means for US buyers and workers
If approved, the new SUV would expand Volkswagen's US range and could support further job creation at the Chattanooga plant. For American buyers, it would offer an alternative to segment leaders from Ford, Toyota and Honda, potentially at a more accessible price point than the Touareg. The move would also strengthen Volkswagen's effort to design and build vehicles that reflect local market preferences, a strategy already in place with the US Passat.
Further updates on the model's development, production confirmation and technical details were expected as Volkswagen finalised its plans for the US market.
