VW to Launch its First SUV in Brazil Next Year

Volkswagen AG says it will spend 2 billion reais ($599 million) to launch production of its all-new T-Cross small SUV/crossover vehicle in Brazil.

The vehicle (pictured) will be manufactured at VW’s plant in Sao Jose dos Pinhais and go on sale locally in the first half of 2019. VW is introducing the T-Cross, which rides on the MQB platform that also carries the brand’s subcompact Polo, in Europe late this year.

VW says it is betting that the small crossover, its first such model in the subcompact segment, will be a hit in Brazil. Last year passenger vehicle deliveries in the country snapped a four-year slump, rising 10% to 1.86 million units. Trade group ANFAVEA predicts another 10% sales increase this year.