Makes sense, considering it's being aimed directly at the red hot crossover segment in the US.
You may remember Volkswagen's CrossBlue Concept that debuted a while back. It was a very clear preview of what a new mid-size crossover, specifically for the US market, will look like. And today, word has come out that not only has a production version been given the official green light, but also that it will be built alongside the US-spec Passat in Chattanooga, Tennessee. Apparently, VW management in Germany was also considering its Pueblo, Mexico production plant.
However, the folks in Tennessee obviously managed to impressed them enough to award them with the highly lucrative contract. There were some previous rumors going around indicating that VW delayed production because it was having a hard time making a business case for the crossover. We actually find that quite surprising, considering just how popular crossovers are in the US, and the CrossBlue (or whatever its official name will be) was designed specifically for that market. It'll slot in between the Tiguan and the Touareg, but unlike that pair, it'll need to be more competitively priced if VW really wants it to make a dent in its segment.