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Report says new SUV to be built in Chattanooga

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The Volkswagen CrossBlue SUV. VW photo The Volkswagen CrossBlue SUV. VW photo

German auto-maker Volkswagen may be nearing a decision of where to build their new mid-sized SUV, according to a report from Reuters.

The SUV, destined for the North American market, could be built in Chattanooga or Mexico, but the european news agency attributes a German newspaper, Frankfurter Allgemeine Zeitung, stating that the SUV will be built in Chattanooga at the Volkswagen facility.

Tennessee officials returned to the table with Volkswagen after the UAW vote earlier this year, but details on possible incentives have not been made public yet.

Volkswagen unveiled the CrossBlue hybrid SUV in January, sporting seven seats and a footprint different than the current Touareg SUV.

Frankfurter Allgemeine Zeitung also cited company sources saying Tennessee has offered tax breaks, land deals and other incentives topped the $300 million mark, possibly giving Chattanooga an edge over the Mexico facility.

Volkswagen declined to comment on the report.

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