The company had been working to determine if the new model should be built in the US or further south at a Mexico facility. Executives appeared to lean toward Tennessee in 2012, however the recent unionization campaign and consequent conflict with state legislators called into question the initial report.
Tennessee Governor Bill Haslam was accused of threatening to withdraw a $300-million incentive package if the United Auto Workers’ unionization attempt was not rejected. Workers narrowly voted against the union, though VW’s ongoing support of a union-backed works council has been viewed as potential deal breaker.
State officials allegedly followed through with their commitment to provide $300 in incentives, despite the public threats and rumors, helping seal a preference over Puebla, Mexico, unnamed company officials told German newspaper Frankfurter Allgemeine Zeitung, as reported by Reuters.
The company has not yet unveiled the new crossover, which is expected to be aimed at the North American market with seven-passenger seating. It is believed to be on track for a 2016 launch.
Leave a Reply