The factory currently builds the Passat, and has been in the running alongside VW's Puebla, Mexico factory to build a new crossover vehicle, likely based on the CrossBlue Concept. According to Bloomberg, a pair of unnamed sources have confirmed that Chattanooga is the favorite ahead of an official announcement.
When last we heard about the CrossBlue Concept, word was that a production decision had been delayed over concerns about the three-row CUV's business case. That August 2013 story claimed that a decision regarding the CrossBlue would be pushed back until early in 2014, which means we're ripe for some sort of news, whether good or bad.
Us? We'd be a little shocked if VW didn't pull the trigger on a CrossBlue-sized utility sooner rather than later. After all, the automaker has hugely ambitious volume targets that are slipping away, the CUV market is red hot, and the two-row Tiguan is aging (and a bit too expensive) and the five-seat Touareg is a premium-priced offering. In other words, there's a hole in the company's lineup big enough to drive a CrossBlue-shaped truck through.