Volkswagen launches its new compact hot hatch, the Golf R32 in early 2012.

Volkswagen is adding a much-anticipated new performance car to its line-up, a version of its new compact model to be known as the Golf R.

The addition is designed to underscore VW’s traditional appeal to those who want affordable, sporty European alternatives to popular Japanese “rice burners,” such as the Subaru WRX STi.  The Golf R will be significantly more powerful than the German maker’s current performance model, the GTI, Volkswagen revealed.

“The European Golf R is simply the most powerful Volkswagen sports performance vehicle ever built,” the maker said in confirming the plans, which call for a launch in the U.S. market early in 2012.

The Volkswagen Golf R will turn out 256 horsepower in U.S. trim, down from 270 horsepower and 258 lb-ft of torque with the European model.  That’s still a significant upgrade from the last compact performance model the maker offered, the R32.  The new R32, meanwhile, will be powered by a version of the current turbocharged 2.0-liter inline-four, rather than the older compact hatch’s V32 powertrain.

The American version of the R32 will make 256 hp.

Powered will be fed to all four wheels through a Haldex all-wheel-drive system which, Volkswagen is betting, should increase the R32’s appeal to buyers who also have the choice of the STi and AWD Mitsubishi Lancer Ralliart.  The new model will be offered only with a manual transmission, clearly limiting its potential market but helping VW focus the R32 as a true performance car.

That fits in with the maker’s efforts to both expand its American line-up and give U.S. buyers a better reason to consider a brand that has had some significant ups-and-downs in recent years.

The Golf R32 will be offered only with a manual gearbox and a Haldex AWD drivetrain.

VW recently introduced a new Jetta line-up that is distinctly more American in character and includes a base model priced to tackle lower-cost Asian entries.  The maker is now preparing for what could be its most critical launch in years, an all-new model that will replace the old Passat.

Even more than the Jetta, this new offering, code-named the New Midsize Sedan, was specifically developed for the American market.  And it will be produced at VW’s new assembly plant in Chattanooga, Tennessee.

All told, the maker hopes to triple its current sales and hit about 800,000 annually, in the U.S., by 2018.

VW's new U.S. CEO promises more performance models to come as VW expands its American line-up.

The challenge is to broaden out the line-up but also provide distinctive models that harken back to the sporty side of Volkswagen that sustained demand even in its down years.

“We have products that appeal to the enthusiast and cars that are accessible to the majority,” said Jonathan Browning, the new CEO of the Volkswagen Group, during an appearance before the International Motor Press Guild, this week. “I’m pleased to say, there is more of this strategy to come.”

VW's New Midsize Sedan will go into production later this year at an all-new Tennessee assembly plant.

Significantly, Browning noted, 60% of the buyers for the newest version of the Jetta are coming from other brands.  The maker hopes to increase that with the R32.

Plans call for the R32 to be offered in both 3- and 5-door configuration.

The 256-horsepower I4 will be complimented by oversized brakes, a twin center-mounted exhaust system, a beefed up suspension and the ability to modulate the brake intervention system – which includes electronic stability control – for an enhanced track-like ride.

The formal preview of the new Volkswagen Golf R32 is scheduled for early in 2011, possibly at the upcoming Detroit Auto Show.

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