Volkswagen adds 2,000 jobs to build new SUV in Tennessee

It's no Microbus, but Volkswagen wants to haul American families again.

After years of delay and debate, the German automaker finally announced today it would build a seven-passenger SUV based on the CrossBlue concept at its Chattanooga, Tenn., plant. The $900 million project will add 2,000 direct jobs in Tennessee as the plant ramps up production by late 2016, with the CrossBlue targeting buyers of the Chevy Traverse, Ford Explorer and Toyota Highlander.

"With the midsize SUV, the expansion of the Chattanooga plant ... the focus is on the wishes of the U.S. customer," said VW Chairman Martin Winkerkorn. "This is also a strong signal for the U.S. as an industrial and automobile production location. The Volkswagen brand is going on the attack again in America."