VW Ponders New Crossover for U.S. Market

Volkswagen AG sees "great opportunity" to add a third crossover vehicle to its American lineup.

Jonathan Browning, CEO for VW of America, tells the Automotive Press Assn. in Detroit that VW is considering a midsize model that would fit between its small Tiguan and large Touareg crossovers. Those two models are priced in the U.S. at $22,800 and $43,400, respectively. VW doesn't currently have a third crossover model in its global product portfolio.

Browning notes that VW's $1 billion assembly plant in Chattanooga, Tenn., is equipped to build 150,000 Passat sedans annually but could be expanded to make more than 250,000 vehicles per year. He declined to say when or if VW will decide to move ahead with a third crossover model.

Last year VW sold 26,000 Tiguan (+24%) and 7,500 Touareg (+60%) vehicles in the U.S., according to Autodata Inc. Sales through the first four months of 2012 rose 13% for the Tiguan and 47% for the Touareg.