Volkswagen says it’s sticking with planned investments at its plant in Chattanooga, Tennessee – including production of a new SUV there.
Volkswagen AG is reviewing investment spending worldwide as it faces a scandal over cars equipped to evade U.S. diesel emissions tests. The company has set aside 6.7 billion euros ($7.5 billion) to pay for recalls, but analysts say the total costs will be much higher.
The company, based in Wolfsburg, Germany, said in a statement Thursday that it will invest $600 million in Tennessee and reiterated plans to build a new midsize SUV there starting from the end of 2016.
Volkswagen Group of America CEO Michael Horn said that “the clear commitment to the Chattanooga location confirms our engagement in North America and our confidence in the local team.”