It's Only Getting Going, but the Volkswagen Atlas Is Already One of VW's Top Sellers

Timothy Cain
by Timothy Cain

June 2017 was only the Volkswagen Atlas’s first full month on sale in the United States, but the Atlas, still ramping up inventory, already accounts for more than half of Volkswagen’s U.S. utility vehicle sales. In fact, the only Volkswagens that sold more often than the Atlas in June were the Jetta, Passat, and (if you count all variants together) the Golf.

2,413 units is not a terribly impressive number, although it’s stronger than what the Mitsubishi Outlander, Ford Flex, Mazda CX-9, and Volkswagen’s two other utility vehicles managed last month. But the rate at which Volkswagen is building the Atlas at the company’s Chattanooga, Tennessee, assembly plant suggests dealers are only beginning to see just how many copies of the Atlas they’ll soon have to sell.

Will there be buyers?

According to the Automotive News Data Center, Volkswagen’s Tennessee plant built 6,104 Atlases for North American consumption in June, the sixth month of production increases at the Tennessee plant.

Getting the Atlas to dealers and into customer hands has not been a quick process. Having built nearly 24,000 copies of the Atlas by the end of June, Atlas inventory at Cars.com shows fewer than 1,000 units.

But these are very early days for the Atlas, a vehicle on which half the load of Volkswagen’s U.S. SUV hopes rest. The Volkswagen Tiguan arrives later this year in long-awaited second-gen form, and brings with it a third row that could limit some of the Atlas up-sale potential.

The Volkswagen Touareg, meanwhile, has been dropped from Volkswagen’s lineup.

Years of apparent Volkswagen non-reaction have passed since the SUV/crossover wave began to grow in America. While the industry generates over 40 percent of its sales from utility vehicles, Volkswagen has been tied to increasingly unpopular, aging passenger cars. As a result, through the first-half of 2017, only 14 percent of the vehicles sold in Volkswagen’s U.S. showrooms were utility vehicles.

The Atlas, however, unlike the overpriced Touareg and undersized Tiguan, sits in the center of the market. Despite its blocky styling — about which even some Volkswagen insiders were decidedly unhappy — the Atlas has a measure of mainstream appeal the Touareg and first Tiguan could never dream of. Given the anti-Volkswagen tide that recently swept across America, the lack of built-in loyalty for an all-new nameplate, and the slow inventory ramp-up, the Atlas’s early numbers bode well.

Now that the Atlas is being built in consequential numbers, we expect to see far more significant U.S. Atlas sales figures, and soon. If not, it’ll be obvious that Volkswagen’s production is not running parallel to demand, and all the more obvious that Volkswagen of America can’t even produce significant volume in one of the United States’ hottest categories.

[Images: Volkswagen]

Timothy Cain is a contributing analyst at The Truth About Cars and Autofocus.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars.

Timothy Cain
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  • JK43123 JK43123 on Jul 26, 2017

    At least it has a name you can pronounce. .

  • Brettc Brettc on Jul 27, 2017

    The new Tiguan looks good too. Local dealer had 3 of them on the lot on Sunday. I don't think I could buy one because of the fuel economy (or lack thereof) but I think they'll probably sell okay. The better warranty will help both the Atlas and Tiguan.

  • Kjhkjlhkjhkljh kljhjkhjklhkjh A prelude is a bad idea. There is already Acura with all the weird sport trims. This will not make back it's R&D money.
  • Analoggrotto I don't see a red car here, how blazing stupid are you people?
  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
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