(Bloomberg) -- Nasty trade talk hasn't turned the largest German automaker off its U.S. growth plans: Volkswagen AG is investing in its Tennessee factory and expanding its lineup of the sport utility vehicles that Americans love.
VW plans to reveal at the New York auto show next week a five-passenger SUV concept, presaging a model that the automaker will build at its $900 million factory near Chattanooga that's assembling the seven-seat Atlas. The company said it's investing $340 million more to bring the new SUV to market.
No jobs will be added to produce the additional vehicle, but it should improve job security at the factory, a spokeswoman said by email. The southeastern Tennessee factory, which also assembles Passat sedans, employs about 3,200 workers.
President Donald Trump has complained about the imbalance in tariffs between the U.S. and Germany, calling for “reciprocal” taxes. American companies face 10 percent levies on vehicles and parts going into Europe, while EU companies pay 2.5 percent on cars and SUVs imported to the U.S. Imports of light pickups face a 25 percent U.S. tariff.
To contact the reporter on this story: Jamie Butters in Southfield, Michigan, at jbutters@bloomberg.net.
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Anne Riley Moffat
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