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CHATTANOOGA, Tenn. (AP) — Volkswagen is jumping into the U.S. auto market with a new Passat that is bigger, cheaper and built domestically in hopes of breaking into the competitive midsize sedan market.

During a grand opening for their new plant in Chattanooga on Tuesday, the German automaker presented the 2012 Passat as the key to building U.S. sales to 1 million units by 2018. The factory has been producing cars since April and Volkswagen officials took the opportunity to show off both their German-designed sedan and the plant.

The new Passat will go on sale in the third quarter for $20,000, about $7,000 cheaper than current models built in Germany, and close to competitors' prices like the Ford Fusion, the Toyota Camry, the Honda Accord and the Hyundai Sonata.

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