VW Announces New South American SUV, Invests $653M In Plant

Khodrocar - As a part of its new major strategic plan, Volkswagen will try to realign its business on the South American market by delegating locally responsibilities previously controlled centrally from Wolfsburg and by investing more than $653 million in its Pachecco plant in Argentina. From 2020, the automaker will produce a brand new SUV model there and will deliver it to the entire South American market.

The new vehicle will be based on a localized variant of the global MQB platform and will be "targeted to appeal to a broad customer base on the South American continent.” It will be one of a total of 20 new cars for this market scheduled to be introduced by end of the decade, including a revamped pickup range and further locally-built SUVs.

"Volkswagen believes in the great potential of the South American continent,” Volkswagen South America's CEO Di Si comments. "The investments create the optimal conditions for the efficient production of our new SUV – built in Argentina for the markets in South America.”

Also part of the "biggest model offensive in the history of the brand” on the continent will be a seven-seat variant of the Tiguan, going on sale in Brazil early next year, as well as another Golf-sized crossover, essentially a rebadged version of Skoda’s Karoq, most likely wearing the Tharu moniker.

According to preliminary details, the vehicle will be offered with the company’s 1.4-liter TSI engine with 150-horsepower (112-kilowatt), also produced on the continent. The more technologically advanced 1.5 TSI will also be available with systems such as cylinder deactivation, variable geometry turbo, and other efficiency-boosting techs.

"We are laying the foundations for the brand's growth on international markets with Volkswagen's Transform 2025+ strategy,” Herbert Diess, CEO of the VW brand, said at a meeting with the President of Argentina, Mauricio Macri. "South America and Argentina play an important role in this regard. Key elements of the growth strategy are the biggest model offensive in the history of the brand and the systematic regionalization of our business.”

Note: VW T-Roc teaser images pictured.