Volkswagen has announced that it will build a new seven-passenger, three-row SUV spun off the Volkswagen CrossBlue concept at its Chattanooga, Tennessee plant in late 2016.

The SUV is for people who are "looking for something larger than a (Volkswagen) Tiguan," said Michael Horn, president and CEO of Volkswagen Group of America.

"This vehicle will be a true American car - big, attractive with lots of high-tech on board," said Martin Winterkorn, Volkswagen AG CEO, in a statement. "It will be built by real Americans."

The midsize vehicle was developed for the North American market, according to Winterkorn.

Horn said that VW's U.S. dealers pushed for the new SUV.

"Now we can give them their car," Horn said in a press conference this week.

A name has not been decided on yet, according to Gillies.

VW documents have only referred to the vehicle as a midsize SUV thus far.

The automaker also failed to confirm tech specs and pricing information.

Horn confirmed that there will be a clean-diesel TDI version released at some point, but couldn't say when, according to Edmunds.

VW also confirmed that it is making a $900 million investment to expand the Chattanooga plant. The move will most likely add over 2,000 new jobs to the area.

The automaker restated that it is committed to selling over 800,000 vehicles in the U.S. by 2018.

Volkswagen said it plans on adding 200 additional engineers to work at a new research-and-development center in Chattaooga.

"We're listening even closer to the wishes of American drivers," Winterkorn said.

The CrossBlue made its global debut at the 2013 Detroit Auto Show.

VW expects the new SUV to compete with vehicles like the Ford Explorer, Honda Pilot, and the Nissan Pathfinder.

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