VW Confirms It Will Drop Routan Minivan

Volkswagen AG won't renew a contract for Chrysler Group LLC to supply a minivan for the German carmaker to sell in North America, Automotive News reports.

Jonathan Browning, CEO of VW's American unit, tells the newspaper that the slow-selling Routan minivan will be phased out this year, as expected. He says remaining 2013 models are being sold to employees at a discount or added to the company's own fleet.

Browning says the minivan segment is shrinking as consumers shift to crossover vehicles and SUVs. In place of the Routan, VW is expected to introduce a midsize crossover vehicle based the CrossBlue concept it unveiled at the Detroit auto show in January.

The Routan, which is a mildly restyled version of the Chrysler Town & Country and Dodge Grand Caravan minivans, has been offered only in North America. Chrysler stopped making the VW model at its factory in Windsor, Ont., last July.

VW has sold fewer than 58,000 Routans since the model debuted in 2008. U.S. volume peaked at about 16,000 vehicles in 2010 and slipped to 10,500 units last year.