Reuters is reporting that the long-awaited decision on the production site of Volkswagen’s new crossover is set to be handed down any day now, and the winner is Chattanooga.
According to Reuters, a generous incentive package swayed the decision to build the new CUV in the United States, rather than Mexico
The state of Tennessee is offering tax breaks, staff training, free land and infrastructure upgrades worth about $300 million in total, giving it a clear edge over Puebla, Mexico
Dealers have been crying out for a CUV sized above the Touraeg, but priced closer to the Honda Pilot (rather than in the pseudo-luxury space occupied by the Touraeg). With CUV sales growing in globally, the lack of competitive crossovers in Volkswagen’s North American product portfolio is undoubtedly holding them back from further growth in North America. The new three-row CUV should help put them on track – but without a next-generation Tiguan that’s adapted to North American tastes, it may be too little too late.