Volkswagen has begun expanding its Chattanooga, Tenn., manufacturing plant as it prepares to begin building a new mid-size SUV for the U.S. market.

Construction began in January at the plant to add 512,886 square feet of space. The assembly, body and paint shops will each undergo a major expansion to accommodate the new SUV model.

Construction on the plant will continue for the next two years.

Volkswagen is producing a mid-SUV based on the CrossBlue Concept that would begin production toward the end of 2016. The seven-passenger vehicle is being built at the same plant that produces the Passat.