Volkswagen may build new midsize car in Chattanooga

Volkswagen of America’s chief said Wednesday that the Chattanooga plant could be the perfect site for producing a midsize utility vehicle, according to the Detroit Free Press.

Jonathan Browning, CEO of VW of America, told reporters that the automaker needs a vehicle sized between the compact Tiguan and larger Touareg.

“It’s under discussion,” Browning said.

Browning reiterated expansion potential in Chattanooga if needed, saying a phase two could boost production to 250,000 vehicles a year. Another phase would involve building a second facility and hike capacity to 500,000 vehicles annually.