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America or Mexico? Where Will VW Build its New CUV?

The upcoming seven-passenger CUV is being tailor-made for the US.

We’ve known for some time that Volkswagen is planning to launch a new crossover specifically for the US market. Americans love CUVs, and VW wants to become the number one global automaker in the world by 2018. It makes perfect sense for such a model. The unnamed model will likely be a production version of the CrossBlue Concept revealed at Detroit in 2013. The production CrossBlue will face off directly against the likes of the Chevrolet Traverse and Toyota Highlander.

A 2016 launch is being targeted. Just about everything is in place except for one thing: where will it be built? Previous reports have claimed that two locations are being considered: VW’s Puebla, Mexico plant or its Chattanooga, Tennessee facility. So which of those two finalist locations will get the upcoming seven-seater? Reuters claims that Chattanooga is the preferred choice for a number of reasons. The state of Tennessee is trying to make VW’s final decision a no-brainer by offering the following: tax breaks, staff training, and free land and infrastructure upgrades worth nearly $300 million. Top VW executives aren’t commenting on this report, but an official decision is expected in the very near future.

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