"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 Woebcken, chief executive of Volkswagen Group of America.
Volkswagen is investing about $340 million on top of the $900 million already invested in the plant for the Atlas production. The smaller Atlas, which should slot nicely between the seven-passenger Atlas and the smaller Tiguan, will feature different styling than the existing version.
Nasty trade talk hasn't turned the largest German automaker off its USA growth plans: Volkswagen AG is investing in its Tennessee factory and expanding its lineup of the sport utility vehicles that Americans love.More news: 'Black Panther' Surpasses 'Tomb Raider' for Fifth Box Office Crown
VW started producing the Atlas in Chattanooga in 2016.
Volkswagen is adding another vehicle to its local production line. The five-seat Atlas will be the third Volkswagen model to be produced at the Chattanooga, after the Passat and seven-seat Atlas.
The Passat sedan was also marred by the diesel emissions scandal that affected certain models and cost the automaker billions in fines.More news: SIX NATIONS: I am living the dream says Ireland captain Rory Best
The German automaker announced today that it will be building a 5-passenger, two-row version of the crossover alongside its three-row companion at the automaker's Chattanooga, Tennessee, assembly plant.
"So obviously Volkswagen's had its challenges the last three or four years".
The plant employs around 3,500 people. We should be able to answer a few of those size and marketing questions once the SUV is shown in concept form at the 2018 New York International Auto Show.More news: Trump speaks at shamrock bowl presentation, with Irish prime minister in town
Michael Edward Miller is a reporter with WUTC in Chattanooga.