Volkswagen To Show Five-Seat Atlas Concept In New York

Volkswagen To Show Five-Seat Atlas Concept In New York

Volkswagen To Show Five-Seat Atlas Concept In New York

Volkswagen will add a new SUV to its United States lineup, and we'll see it previewed in concept form at the New York Auto Show next week.

Volkswagen announced on Monday that it will build a five-passenger SUV based on the Atlas.

Volkswagen Chattanooga will build the company's new SUV.

VW said it would reveal the model's name in NY.

Like the Atlas, the new vehicle is designed and engineered for the American market.

VW spokeswoman Jeannine Ginivan said in an email that the move "is not a reaction to the proposed tariffs".

President Donald Trump has complained about the imbalance in tariffs between the USA and Germany, calling for "reciprocal" taxes. The five-passenger Atlas variant will mark the third Volkswagen model assembled at the Chattanooga factory.

The first model built in Tennessee remains in a serious slump, even leading Volkswagen to idle its plant for two weeks this spring.

"They needed to fill out that plant for business economic reasons, not for trade reasons", she said.

The new model marks the continuation of VW's so-called "SUV offensive" as the company aims to diversify its lineup after overcommitting to passenger cars. Nissan, for example, recently started selling the Rogue Sport, a smaller and peppier version of its popular and larger Rogue crossover.

Volkswagen invested $900 million to expand the plant to produce the Atlas, a three-row SUV that went on sale in 2017.

In 2017, VW Group of America Chief Executive Officer Hinrich Woebcken told reporters at the NY auto show that the automaker planned to build a five-seat SUV in Tennessee, but he declined to say when production would begin. Additionally, the automaker confirms that this new SUV will be built in Chattanooga, Tennessee, as part of a $340 million investment into its local manufacturing facility.

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