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Speculation is rising that Volkswagen's new SUV could be made in Tennessee.

The company is set to choose its Chattanooga plant as the place where it will manufacture a new SUV, according to a German newspaper.

RELATED: Haslam: Tenn. back in talks with VW

Tennessee is reportedly offering the company tax breaks, staff training, free land and infrastructure upgrades worth about $300 million.

VW unveiled plans in January to make an SUV tailored for the North American market.

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