Volkswagen AG’s replacement for the Passat is a mid-sized sedan that’s bigger and more affordable. This replacement will be produced in Chattanooga, Tenn., and is made to rival the mid-sized segment forerunners: the Toyota Camry, Honda Accord and Ford Fusion.

The Tennessee plant that’s currently being constructed can build up to 150,000 units annually. Last year, VW was only able to sell 11,138 Passats. The sedan is priced from $20,345, and the Accord LX sedan starts at $22,805. Meanwhile, a VW Passat with a 2.0-liter turbocharged engine is priced from $27,945. Prices include shipping. VW aims to cut the pricing of the Passat replacement to around $20,000. Tom Loafman, U.S. purchasing director for Volkswagen Group of America, made at least 85% of the sedan’s components in North America, exceeding the old target of 80%. Loafman said that the carmaker has “overachieved.” Purchasing parts locally enables VW to avoid currency fluctuations that can increase the cost of parts.

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