The new 7-seater will be smaller and less expensive than the current VW Touareg model.
Volkswagen has confirmed it will build an all-new 7-seat, 3-row SUV specifically designed for the American market that will slot in-between the current VW Touareg and Tiguan models.
The German maker’s chief executive also revealed that the as yet-unnamed model will be produced somewhere in the United States, though he didn’t say where. That leaves VW the option of either expanding its existing facility in Chattanooga, Tennessee or building a second plant.
The new model will slot in-between VW’s current base utility vehicle, the $22,995 Tiguan, and the top-line, $43,000 Touareg, CEO Martin Winterkorn said during an appearance in New York City.
The 7-seater will be one of two new crossover/SUV products Volkswagen is planning to launch on the global market in the near future. The maker unveiled a concept version of a compact CUV in Brazil earlier this week and the VW Taigun is expected to return in production form in the near future.
While it is unclear if that model – which shares its platform with the subcompact VW Polo – will eventually be offered in the States, Winterkorn has complained that Volkswagen is “under-represented” in the booming American utility vehicle market.
Expanding its presence could be critical if VW is to achieve its goal of boosting U.S. sales to 800,000 before decade’s end – almost doubling the current rate of demand. Sales have been rising fast, gaining 30% during the first nine months of 2012, as new and more Americanized products reach market – especially the new Passat that is being built at the Chattanooga plant.
That factory has been steadily expanding production and will soon reach 170,000 units of capacity with the addition of a third shift. Company officials have said that to further boost output would likely require expanding the facility. That was taken into account in the plant’s original design and there is room to more than double its current size.
However, VW might also consider a second U.S. location, according to some reports. The maker also has an expanding production base in Mexico where it is expected to soon add the popular Golf model. Its Audi brand recently announced that it will build an SUV plant in Mexico, as well. But it appears most likely VW’s new 7-seat SUV would be built north of the border.
Whatever the final decision, it would require significant investment on top of the $4 billion VW has spent in the States over the last five years.
VW Will Build New 7-Seat SUV in US