The Volkswagen Chattanooga plant has started building the redesigned 2027 Atlas, with the first SUVs due at U.S. dealerships this month. Automotive World reported that assembly began Sept. 29 at the Tennessee factory.
Inside the Volkswagen Chattanooga plant changeover
The new three-row Atlas uses a turbocharged 2.0-liter EA888 evo5 four-cylinder engine rated at 282 horsepower, the most power the Atlas has offered. Henning Habicht, head of Chattanooga operations, called the start of assembly “an exciting milestone” for the team.
The Atlas Cross Sport is not part of the first wave. Autoblog reported that the two-row variant will launch in the first quarter of 2027.
The factory has built more than 1 million Atlas and Atlas Cross Sport vehicles since December 2016, Automotive World reported. Volkswagen first tied the model to a $900 million expansion of the plant. The report said the factory employs more than 4,000 workers.
Why the Atlas matters after the ID.4
The restart follows the end of ID.4 production at the Volkswagen Chattanooga plant in mid-April 2026. Volkswagen announced the move April 9, saying the electric vehicle market continues to challenge the industry, according to Automotive Manufacturing Solutions. The ID.4 had been built in Chattanooga since 2022.
Volkswagen has said the ID. Tiguan will succeed the ID.4 in North America. The company plans to unveil it in early October, with a European launch in early 2027. Volkswagen said it will share North American timing later, according to Edmunds. The sources reviewed did not say whether the ID. Tiguan would be built in Chattanooga.
What’s next for Volkswagen in Tennessee
Shoppers can expect the 2027 Atlas at dealerships in October, Autoblog reported. The next milestone for the Volkswagen Chattanooga plant is the Cross Sport launch in early 2027. For more car coverage, see our stories on the Range Rover Sport Electric, the Century SUV and Ford rally history.
Source: Automotive World.
