Volkswagen (VW) to decide SUV production location by year end

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Building the new SUV, in the States, keeps production in its largest market while building in Mexico can open free-trade export to South America.

Volkswagen (VW) has confirmed an upcoming crossover sized between the Tiguan and Touareg models, and said that it will build the vehicle either at the Chatanooga, Tennessee or Puebla, Mexico assembly plants. The new SUV will slot into a new segment for VW, offering seven seats. The new SUV will be based on VW's MQB components set, which will also underpin the next-generation Passat. Speaking to the Management Briefing Seminars being held in Michigan this week, Frank Fischer, chief executive officer (CEO) of Volkswagen Group of America's Chattanooga Operations, said: "No decision has been made yet. My team is working hard to get this as a second vehicle."

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