Volkswagen AG's VOWG_p.DE top USA executive said the German automaker plans to build another new sport utility vehicle at its Chattanooga, Tennessee plant as demand surges for larger vehicles.
He gave no timeline on when the new SUV would debut or its intended volume, but said the company is committed to it.
VW AG is the largest automaker worldwide in the sales category and will begin selling its seven-seat VW Atlas SUV in May 2017. We also believe there is room for a 5-seater mid-size SUV, a derivative of the Atlas, based on the MQB architecture.
Woebcken said VW was shifting focus in the United States from a mainly auto brand to a "family friendly" automaker offering larger, USA -built SUVs. We have shown the new Tiguan and announced that we will continue the current Tiguan as the "Tiguan Limited". Given this unusual upward trajectory for an aging model and the market's vigorous demand for SUVs, Volkswagen of America will stick with the old Tiguan for the 2018 and 2019 model years. VW recently debuted a long-wheelbase version of the 2018 Tiguan and it arrives in showrooms in the third quarter this year.
"This warranty further addresses the needs of American buyers head-on", said Volkswagen Group of America Chief Executive Officer Hinrich Woebcken in a statement.
"We're doing this because. the SUV segment is so large that there is very easy and enough space for two Tiguans", he said. The factory employs more than 3,200.
Volkswagen's new warranty offer shows the automaker is serious about regaining trust and showing its vehicles are created to work as promised for the long-term.