Volkswagen has officially commenced production of the second-generation 2027 Atlas at its Chattanooga facility in Tennessee. The plant, which employs approximately 4,000 people, began manufacturing the redesigned three-row SUV this past summer, marking the most significant production changeover since the factory opened.
The 2027 Atlas features a redesigned exterior, an updated cabin, and a new 282-horsepower turbocharged 2.0-liter EA888 evo5 engine. The first units are scheduled to arrive at US dealerships in October 2026. The two-row Atlas Cross Sport variant is expected to launch in the first quarter of 2027.
The Chattanooga plant has been the exclusive production site for the Atlas nameplate since December 2016, following a $900 million expansion. To date, the facility has assembled over 1 million Atlas and Atlas Cross Sport vehicles. By its 15th anniversary in 2026, the factory reached a milestone of 1.85 million total vehicles produced.
The factory previously produced the Passat and the electric ID.4 model. Volkswagen ended the ID.4 assembly line at the Chattanooga site in mid-April 2026 to focus on the new Atlas generation. This transition underscores the brand's strategic reliance on the Tennessee plant for its US market operations.
