By on May 13, 2014

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Volkswagen partially answered one of its biggest questions today, with an announcement that a new mid-size SUV for the American market is in the pipeline.

The announcement is expected to be made official later today, as part of a broader plan to build a new Audi factory in Mexico and refresh VW’s lineup in Brazil. Along with the product announcements, Bloomberg is reporting that VW is on track to deliver 10 million vehicles in 2014, well head of VW’s initial forecasts.

But the success comes at a price: VW’s plans for the American market have been a major disappointment, with continuously sliding sales even as the American market hits record volumes. The new SUV is a major cornerstone for VW’s plans in America, as it competes in one of the biggest market segments, but dealers will have to wait years for its introduction.

Also left unresolved was its production site. The recent battle over whether or not the UAW could organize VW’s Chattanooga, Tennessee plant was supposed to have resolved the matter, but warring factions on both sides failed to provide a clear resolution. VW supervisory board officials said that a “No” vote to the UAW would put the SUV in jeopardy, while Tennessee state officials said that a “Yes” vote would mean an end to subsidies slated for plant expansion for the SUV. The SUV’s placement at Chattanooga could expand capacity from 150,000 to 500,000 units, but VW could also decide to build it in Mexico.

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47 Comments on “VW Confirms American Crossover, No Manufacturing Site Announced...”


  • avatar
    whynot

    Well at least VW finally decided to build one, even though they should have done this 5 or so years ago. Now let’s see how long it takes them to decide where to build it while their dealers are screaming at them for it.

  • avatar
    Volt 230

    “It’s too late baby, now it’s too late” They cannot sell their small CUV’s what makes them think they can sell a larger, more expensive one?

  • avatar
    natrat

    I am beginning to think that whoever is calling the shots for vehicles in this market is really stupid. It does seem too late and with VWs luck they will launch this turd no one wants right when gas starts to spike again.

    • 0 avatar
      alsorl

      VW has something called a diesel engine that is used in many of their products. This diesel technology is very popular. It will probably be used in this new SUV.

      • 0 avatar
        seth1065

        True but lets be fair here they do not us ether TDI engine in the only CUV they have no, so it is not a slam dunk they will in the midsize version.

        • 0 avatar
          alsorl

          If they put a TDI in that mid sized SUV and it got 42mpg. VW would sell everyone of them at full retail price.

          • 0 avatar
            3800FAN

            Look at the weight of that and compare it to diesel sedans from bmw and mercedes…then add the higher ground clearence and crappy aerodynamics of a cuv and you think you’re gonna get 42 mpg? Keep dreaming. Try 35 at best.

            Diesels are a waste of $$$. High upfront cost and high fuel cost that don’t get met in mpg savings over the life of the vehicle. But hey if you like having a slow, dirty, smelly car that’s expensive to repair you can buy one.

      • 0 avatar
        3800FAN

        Diesel is a waste of $$$ for a car and the only reason Germans are stuck on it is because of national pride…like the brits with steam locomotives in the 50s. Diesel engines make no sense in a car. They cost more to build, cost more to maintain, the is 40 cents more/gallon, and the urea fluid that larger diesel cars REQUIRE TO MEET EMISSIONS add ANOTHER 40 cents more per gallon. Do the diesel math all you want. You will never make up the premium of the diesel motor, and diesel fuel in higher mpg savings….that doesn’t even include the urea cost or higher cost of servicing a diesel motor.

        Hybrids and convential gas engines are the future. Look towards Toyota and Mazda for the future. VW is stuck on pride and diesel fanboys are hipster nerds who only want something different to act smug about.

        • 0 avatar
          alsorl

          Yes, thank you for that very detailed and knowledgeable message regarding the diesel engine. All those nerds and educated type just don’t know nothin about engines or propulsion systems.
          On the other hand its called a free market system and Audi, VW, BMW, MB, and soon to be many auto makers are doing quiet well with those ignorant diesel engines. And those auto makers are doing it without a government handout to create those technologies.

          • 0 avatar
            3800FAN

            Just do the math… it’s just math… just simple math.. you can do it. You will see diesels don’t add up.

          • 0 avatar
            3800FAN

            YEs it’s a free market system and that free market system has shown that diesels are a waste of $$$ and anyone who does the math can see gasoline and gasonline electric hybrids are the way to go.

            There’s this thing called marketing and marketing is why germans cling to diesel. To say HEY WE’VE GOT SOMETHING DIFFERENT! LOOK TORQUE YOU FEEL FAST!! etc. Marketing is what sells diesels… not product superiority.

            To save the trouble here are some facts straight from consumer reports test of the jetta tdi and 1.8 se. Their annual fuel cost…
            SE 1.8T 405 gal. / $1,420
            TDI 2.0 350 gal. / $1,395

            Savings per year, 30 bux. GO DIESEL!!!
            Cost of tdi over 1.8 gas, $2400

            $2400/30buxayear = 80 years

            and the jetta tdi doesn’t even require urea…
            It’s also slower

        • 0 avatar
          Crosley

          I agree that the math rarely works in favor of diesel cars.

          The picture is even more grim for diesels when you start adding in the increased service and maintenance.

          Despite the idea that diesel engine=indestructible drivetrain, the reality is modern diesels are incredibly high maintenance in order to meet all sorts of emission laws.

          You take an identical car, one with a conventional gas engine and one with a diesel, I guarantee you after 150k miles the diesel will have a much taller stack of receipts from the shop.

      • 0 avatar
        3800FAN

        oh btw if diesel is so great why are there no toyota, honda, nissan, mazda, ford, etc diesels in the us? Why only a few german cars and the chevy curze diesel? And where’s this mazda 6 diesel we’ve been hearing about forever and keeps getting delayed?…oh thats right..I forgot it’s never coming to the US market because the gas 2.5 motor gets such high mpg a diesel makes no sense….

        • 0 avatar
          danio3834

          Generally, the cost of emissions compliance.

        • 0 avatar
          Big Al from Oz

          @3800FAN
          Why isn’t there many Japanese diesels in the US overall should be your question.

          Diesel regulations in the US are working against diesel.

          US diesel has a lower cetane value. This makes it harder to meet the harsher NOx levels required by US regulation.

          If US diesel was the same standard as Euro diesel there would be more diesel vehicles in the US.

          Also, you obviously don’t know too much about the Japanese.

          There vehicle market is similar to the US market in that most vehicles are gasoline.

          Also, the Japanese aren’t reknown for diesel technology, Mazda does come to mind, but the SkyActive diesel is having issue meeting US diesel emissions due to the lower standard diesel fuel.

          • 0 avatar
            3800FAN

            Yea shame on us for having higher environmental standards than the dirty self-serving Europeans.

            And if you knew anything about japanese automakers you’d know they do offer diesel engines in their European lineups. As do american brands.

            Lastly the mazda 6 diesel… the fact is they’re never going to release it in the us. THe gas 2.5 engine is that good that it leaves the diesel with such little mpg advantage nobody will buy it.

            The fact is gas engines are getting so good it leaves diesel as a clear cut WOM going forward.

          • 0 avatar
            Big Al from Oz

            @3800FAN
            No silly billy or dill.

            It’s called a technical barrier.

            The US is protecting it’s energy and automotive industry.

            Have you ever looked at satellite imagery of the globe identifying pollutants in the atmosphere?

            Look at the US, particularly the populated regions, then look at Europe.

            Europe has a far greater density of population, but far less pollution.

            Sort of throws you logic out the window.

          • 0 avatar
            alsorl

            Yes the regulations are keeping the diesels from really blooming in the USA. I would much rather have a little uria tank instead of a cabin filled with batteries. It’s also about the driving experience in a turbo diesel. The torque can be amazing as in a Tesla. But that is not your everyday auto. Turbo diesels offer a lot of bang for the buck and they also do a great job with increasing those mpg’s. but that diesel fuel really pisses off a lot of pansies that can’t get there hands a little smelly. I would recommend a pair if gloves.

          • 0 avatar
            3800FAN

            Here’s a reply to your last reply..the thread has reached it’s limit but excuse me? Protecting our auto and energy industry? How exactly? How is it protecting our energy industry when they can just refine curde into diesel instead of gas? How is it protecting our auto industry when they less regulation would let them just offer the diesel motors they have in europe in their us lineup?

            Technical barrier my ass diesel simply pollutes more and we don’t want more air pollution…look at the air quality problem they have in paris now because of all the diesel cars there.

            Diesels pollute more and good for the usa for having higher standards than the Europeans when it comes to air quality. Good for the automakers for bringing out cleaner gas motors that are now getting almost diesel levels of mpg without the added CRAP that comes with a diesel motor and fuel.

          • 0 avatar
            Big Al from Oz

            @3800FAN
            The US for starters exports lots of diesel to the Euro region. Why? Because it’s getting a better price than in the US. This is also a factor driving up US diesel prices.

            If you were selling a product wouldn’t you want to gain the best possible price you can?

            As for diesel. Have a look at the US diesel fuel standard. It’s lower than Europe, but with tighter emission regulations particularly with NOx.

            US diesel prevents the easier running of lower compression diesels. The European diesel can run at a lower compression.

            This reduces pressure and heat, which in turn produces elevated NOx levels in emissions.

          • 0 avatar
            Big Al from Oz

            Sorry 3800 my last sentence is incorrect.

            This reduces pressure and heat, which in turn produces elevated NOx levels in emissions.

            Should read; INCREASES pressure and heat with higher compression.

  • avatar
    alsorl

    The Republicans have destroyed any hope of VW building another vehicle in Tennessee. It will probably be made in Mexico.

    • 0 avatar
      Big Al from Oz

      Think of it this way alsorl, for every vehicle not made in the US the taxpayer is saving $3 000.

      This $3 000 would be better spent on infrastructure to make competitive businesses even better.

      • 0 avatar
        alsorl

        Yes I’m sure that $3000 will go into roads and bridges. Bahahaha. I’d rather see the United States actually build autos then import them for the anti American crowd. I was at the Chattanooga plant last year. They have plenty of roads and infrastructure to build more autos.

    • 0 avatar
      geeber

      If VW needs the plant to be utilized at a certain level in order to be profitable, it will receive other vehicles, regardless of what Republicans do.

    • 0 avatar
      thornmark

      Actually, the UAW was, is and shall no doubt always be the destructive force w/o peer. To look at Detroit you’d thing Germany and Japan won WWII.

      The UAW botched it so badly they’ve lost any chance of organizing transplants in the thriving South. Sure, they have Spring Hill, just more proof the UAW is a curse even in the South.

      Last time I looked the local elected representatives were doing their jobs – making sure taxpayer money would not go, in effect, to the foreign union forces that have done so much to harm American industry.

      The UAW will eventually work their magic on what’s left of northern manufacturing. Detroit is an enduring monument to the UAW and something the UAW can never escape.

    • 0 avatar
      3800FAN

      If vw wanted a unionized workforce they shoulduv built the plant in a non-right to work state instead of the anti-union south. Westmorland PA is a great place I’d say…oh wait….

    • 0 avatar
      Crosley

      Or more accurately, you could say the unions in Germany are preventing VW from building another vehicle in Tennessee.

      If VW won’t manufacture cars unless it’s under the control of a failed union, that’s on them, not lawmakers.

  • avatar
    Roader

    “The recent battle over whether or not the UAW could organize VW’s Chattanooga, Tennessee plant was supposed to have resolved the matter, but warring factions on both sides failed to provide a clear resolution.”

    The resolution was very clear: 712-626.

    • 0 avatar
      alsorl

      Yes, kinda like how they vote in Russia. With the outcome fixed for political reasons.

      • 0 avatar
        Roader

        Not similar, at least by the margins: Putin won his last election with 64% of the popular vote whereas the VW anti-union vote was about 53%; identical to Obama’s 2008 53% popular vote, H.W. Bush’s 1988 53%, and FDR’s 1944 53%. No US presidential election popular vote ever reached Putin’s 64%. LBJ’s was the highest @ 61%.

        • 0 avatar
          alsorl

          Not the percentage of the win. But the powers that controlled that election. Government officials controlling the outcomes by bribery and under the counter tactics.

      • 0 avatar
        3800FAN

        The union lost because the majority of the workers saw that they couldn’t provide them with anything. When you’re making more than what you’d make at a uaw big 3 plant what can the union do except sap $$$ from you in dues?

        THen when you hear Bob King say the uaw has no future if it can’t organize 1 transplant it simply says they’re trying to organize the plant for the benefit of the union, not the workers.

        So that’s why the union lost the vote.

  • avatar
    Master Baiter

    You can count on VW giving this thing a goofy name with no English meaning that people can’t pronounce. Always great for enhancing sales.

  • avatar
    sirwired

    The fact that this thing did not hit showrooms five or more years ago is a complete and total disgrace. And they haven’t even picked a place to build the thing yet?

    If I owned a VW dealership, I’d be beyond furious by now. Other car companies seem to go from a blank sheet of paper to a car rolling off the floor in as long as it’s taken VW to even decide that maybe they want to build the thing, whatever it is, somewhere, at some point in the distant future.

  • avatar
    redliner

    TTAC should host a naming contest for VWs new SUV.

    Also, whats taking so long?! They wonder why their market share is slipping while they drag their feet on the biggest segments of the US market.

    Ford is the new VW, with quasi-premium offerings that have a wiff of euro at an affordable price with a large dealer network to boot.

    • 0 avatar
      Master Baiter

      “The story Volkswagen wants us to believe is that “the people” wanted Tiguan, a blend of the German words for tiger (Tiger) and iguana (Leguan). (It’s pronounced TEE-gwan.)”

      “VW did in fact team up with AutoBild, publishers of German auto magazines, to sponsor a naming contest in which 350,000 readers cast votes. However, readers didn’t suggest the names; they merely voted for names developed by VW’s internal marketing group, according to this Dutch fan site. Other names on the ballot included Namib, Rockton, Samun, and Nanuk.”

      I’m partial to Nanuk.

  • avatar
    3800FAN

    Just what we need in this country….. another bloated overweight, spacially inefficient crossover.

    If vw was smart they’d be risk takers like they were back in the day and make a family transporter that was uniquely different…Instead of trying to build another honda pilot or toyota highlander and becoming lost in the crowd.

    • 0 avatar
      raresleeper

      Like the Routan perhaps? That was a win, right?

      Crossovers are what we Americans want right now, whether as enthusiasts, we feel they drive like crap and get only average mpg or not.

      When your local police department will tell how you much they love their crossovers, America clearly has an addiction to these.

      Gotta love that utility, though. That’s what its all about, man.

      If they do this right, there’s a pile of money waiting for them. It wouldn’t be good business sense for them to miss out on that.

    • 0 avatar
      alsorl

      VW’s would be making something different with the TDI 4cyl. Yes you’ve ranted enough about how it does not make sense and the diesel will destroy mankind. But, it would make a lot of sense to a lot of people that want an AWD midsized suv that gets 40mpg. VW will a hell of a lot of these suv’s if it can get 40mpg.

  • avatar
    natrat

    the routan actually sold in decent numbers, which is saying a lot for vw these days

  • avatar
    DevilsRotary86

    Logically this should be built in Chattanooga, but something in my gut says that this will be built in Puebla. That’s just a hunch though.

    • 0 avatar
      alsorl

      Si. The legislators in Tennessee have pretty much destroyed the expansion of the Chattanooga plant. It’s was just not feasible or financially positive to have more high paying jobs in Tennessee if it involved an auto union. Screw the unions. The thousands of workers can just keep there $10.00/hr jobs before letting in those communist unions.


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