Business Briefs: VW may decide on SUV in 4th quarter

Business Briefs: VW may decide on SUV in 4th quarter

August 6th, 2013 by Staff Reports and Wire Service in Business Around the Region

VW CrossBlue shown in a publicity photo from the 2103 North American International Auto Show

Photo by Contributed Photo/Times Free Press.

VW may decide on SUV in 4th quarter

Volkswagen is expected to decide in the fourth quarter if Chattanooga will land a new sport utility vehicle, the plant's chief said Monday at a automotive conference in Michigan, according to The Wall Street Journal.

"We are in the process but we expect a decision by the end of the year," said Frank Fischer, who oversees VW's operations in Chattanooga. The city is vying with a VW plant in Mexico to assemble the seven-seat SUV.

The Chattanooga factory now employs about 2,700 people. Typically, between 500 and 1,000 jobs would be created when another vehicle is added to a plant, according to the Journal.

Drake's to return next month

McKee Foods Corp., the Collegedale-based bakery that bought Drake's cakes from the bankrupt Hostess Brands earlier this year, will bring back Drake's Coffee cakes, Devil Dogs, Ring Dings and Yodels in September. McKee spokesman Mike Gloekler said the company is still trying to decide whether to bring back Funny Bones, but McKee plans to continue to make other Drake's products even though several Little Debbie brands are similar to the Drake's brands. McKee will make the Drake's snacks in Virginia and distribute Drake's cakes in the same Northeast markets where they were previously sold.

"Our Drake's rollout will not be as splashy as the Hostess return," Gloekler said.