Volkswagen says construction is underway at the Chattanooga manufacturing facility in preparation for production of a new midsize SUV.

The first phase of construction started in early January and will continue for the next two years.

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“This is a very exciting time in the history of Volkswagen Chattanooga,” said Volkswagen Chattanooga CEO and president, Christian Koch.

“A lot of hard work is going into adding this second vehicle line to the plant, but it is crucial to our efforts to move forward in America.”

A total of 512,886 square feet will be added to the existing plant, while the assembly, body and paint shops will each undergo a major expansion to accommodate the new SUV line.

“The all-new midsize SUV is a vital component in Volkswagen’s growth strategy for the US market, meeting the demands of the customer and dealer network,” said Volkswagen Group of America president and CEO, Michael Horn.

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