Volkswagen has announced that it will be building a new five-passenger SUV at its Chattanooga, Tennessee, factory.

Based on the MQB platform, the new Volkswagen SUV will be a variant of the seven-passenger Atlas and, like its sibling, will be designed and engineered for the American market.

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The SUV will mark the third Volkswagen model assembled at the Chattanooga factory. Volkswagen Chattanooga also manufactures the Passat, which went on sale in 2011, and the Atlas, which started sales in 2017.

“The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled five-passenger SUV,” said Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, Inc. “We are not only committed to this market, we are committed to our US manufacturing home in Chattanooga, Tennessee.”

Woebcken made the announcement in Chattanooga with Tennessee Governor Bill Haslam.

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“During my time as Governor, I’ve watched Volkswagen Chattanooga flourish from a single vehicle producer, starting with the Passat, into what it is today—a thriving US manufacturing operation that can produce three models, and counting,” said Governor Haslam. “We value Volkswagen as a committed partner, whose investments in the state have not only created new jobs, but have helped us build a skilled Tennessee workforce. I look forward to watching as VW continues to grow in Tennessee.”

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Volkswagen will invest approximately $340 million to bring the vehicle to market, in addition to approximately $900 million already invested to expand the plant for Atlas production.

A concept version of the five-passenger SUV will be officially unveiled at the 2018 New York International Auto Show.

According to just-auto/QUBE’s PLDB new model database, the two-row/five-seat Atlas variant will be added to the model range for the 2019 model year. The division has filed trademark applications for names including Atlas Allsport and Cross Sport. 

See also: NEW YORK AUTO SHOW – Volkswagen Atlas concept world debut