Volkswagen-Taktische Werkstatt is developing a passenger car that can be driven by a single driver.
The new car, the Volkswagens T-Grosswagen, will be a compact car with a passenger seat and cargo space of 8 to 12 passengers, Volkswagen said.
It will be capable of driving from one side of the city to the other in under 5 minutes, according to a video posted on YouTube by the Chattanooga Automobile Club.
Volkswagen is not making any money on the vehicle.
The T-grosswagen is the first VW vehicle to be built in Chattanooga, and Volkswagen said the first vehicle in the state will be produced at its plant there.
Volkswagen said Chattanooga will be the first city in the U.S. to get a vehicle made in Chattanooga.