UPDATE: Amid much fanfare Monday afternoon, Volkswagen officials announced the next-generation vehicle to be built in Chattanooga. The new, smaller SUV will also be called Altas like it's larger sibling, is designed and engineered for the American market.

"The Atlas has built strong momentum for Volkswagen in the SUV segment, and we are excited to grow our SUV portfolio with this new, Chattanooga-assembled five-passenger SUV,” said Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, lnc. "We are not only committed to this market, we are committed to our U.S. manufacturing home in Chattanooga, Tennessee.”

Volkswagen will invest approximately $340 million to bring the vehicle to market, in addition to approximately $900 million already invested to expand the plant for Atlas production. This could mean additional jobs for the region, but VW officials did not go into details.

A Passat GT model was also announced, sporting over 20 new design features.

PREVIOUS STORY: Volkswagen plans to build a new five-passenger SUV in Chattanooga.

According to a person briefed on details, the company will invest $340 million to bring the vehicle to market. The person revealed this information on condition of anonymity to avoid pre-empting an official announcement Monday in Chattanooga.

The German carmaker describes the vehicle as a variant of the seven-passenger Atlas, designed and engineered for the American market. The Chattanooga plant also manufactures the Passat and the Atlas.

PREVIOUS STORY: An announcement scheduled for Monday afternoon at Volkswagen's Chattanooga plant could outline the German automaker's next move.

Antonio Pinto, the President and CEO, Volkswagen Chattanooga and Hinrich J. Woebcken, President and CEO, Volkswagen Group of America, will join Tennessee Gov. Bill Haslam, Hamilton County Mayor Jim Coppinger and Chattanooga Mayor Andy Berke.

Volkswagen showed their plans for electric, autonomous vehicles at the recent Geneva International Motor Show when they debuted the I.D. Vizzion, a "Level 5" self-driving car.

But speculation also abounds as to VW adding a production line for a smaller version of the Atlas SUV, which could sport a lower profile and fewer seats than the larger seven-seat vehicle built in Chattanooga.

A smaller two-row Volkswagen SUV could help fill the void left by the now-discontinued Touareg SUV.

Earlier in 2018, VW said they would idle production for two separate, nonproduction periods March 26-29 and April 2-5