Volkswagen AG said it will build a new mid-size SUV at its plant in Chattanooga, Tenn., reports The Detroit News.

As part of a $900 million investment, 2,000 jobs will be created.

According to CEO Martin Winterkorn, the new SUV — due by the end of 2016 — means VW is “taking the next step” in the U.S. market. He called it “a true American car: big, attractive and with lots of technology.”

The automaker set an aggressive goal of 800,000 U.S. VW vehicle sales by 2018. It will invest $900 million in the production of the new vehicle, including $600 million in Tennessee and add 200 research and development jobs in Tennessee in a new center at the plant.

Source: The Detroit News