VW Will Spend $3.3 Billion to Jump-Start Sales in U.S.

Volkswagen plans to invest $3.3 billion in North America—$1.2 billion of it in the U.S.—through 2020 to realign its products and boost regional sales.

The company says its aim is to finally move from a niche player to volume supplier in the region. The VW brand controlled only 2% of the U.S. passenger vehicle market last year, according to Autodata Corp.

VW’s Jetta compact sedan accounted for one-third of the brand’s total sales in 2017. VW predicts two new SUV models—the long-wheelbase Tiguan compact crossover and all-new Atlas large SUV—will help it increase its market share to 5% by the early 2020s.

Meanwhile, VW says the next-generation Jetta unveiled on Monday at the Detroit auto show will play a key role in the company’s growth strategy. Last year the Jetta generated more than half the brand’s total sales in the U.S.

The company says the new model is “tailored precisely” to American tastes. The company says there are no plans for a European version of the Jetta, which will be phased out in that market.

Over the next three years VW intends to add at least two new models per year. The coupe-like Arteon sport sedan, a successor to the CC, is due this summer. A redesigned Passat midsize model will arrive in 2019. More crossover vehicles also are under development, and VW plans to introduce the first in a family of all-battery electrics in 2020.