As Volkswagen plans to expand in Chattanooga and Puebla, the Canadian government is loaning €400 million ($433.8 million USD) to the German automaker in exchange for possible future supplier business.

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The three-vow version of the Volkswagen Tiguan will hit showrooms from Puebla, Mexico in 2017.

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Though the seven-passenger SUV based upon the CrossBlue concept is ready to be built, Volkswagen is being pulled by incentive offers in the two locations fighting for the right to build the SUV: Mexico and Tennessee.

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Volkswagen is thinking about moving production of its Tiguan trucklet to North America. Plans for the move are being discussed by Wolfsburg management, the German magazine Wirtschaftswoche reports. (Read More…)