VW Plans $650 Million Upgrade in Argentina

Volkswagen AG says it will invest €560 million ($653 million) to prepare the company’s Pacheco factory outside Buenos Aires to build a new compact SUV for the region.

The new model, code named Tharu, reportedly will be a variant of the Skoda Karoq crossover, which is made in the Czech Republic. The Tharu will ride on the same MQB-A platform that carries the Karoq and VW Golf hatchback.

VW says the Tharu program will create 2,500 jobs within Argentina’s auto industry. The new model is part of Transform 2025+, a year-old plan to bolster the VW brand worldwide. The scheme includes the introduction of 20 new models by 2020 and the goal of becoming a global leader in electrified vehicles by 2025.