VW picks Chattanooga for SUV

After all the hemming and hawing, Volkswagen executives have indeed chosen Chattanooga as the manufacturing center for their planned sport utility vehicle. The company will invest $900 million — $600 million in Tennessee — and hire 2,000 people as part of the project. The first models are expected to roll of the line in early 2016. VW also will set up its National Research & Development and Planning Center in Chattanooga.

Michael Horn, head of Volkswagen of America, said the new, seven-passenger sport-utility vehicle will be "specifically designed for the American market," and become one of four core models for the VW brand in the U.S. along with the Passat and Jetta sedans, and the Tiguan compact SUV.

"Our dealers need those cars," Mr. Horn said in an interview.

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