VW set to triple range of SUVs

Focus on traditional cars such as Golf and Passat has held back brand in US

The Touareg is VW’s first and largest SUV
The Touareg is VW’s first and largest SUV

Volkswagen is considering tripling its sport-utility vehicle lineup in a bid to overtake Toyota in global deliveries.

The VW marque will offer as many as six SUVs in the coming years, expanding from the midsize Touareg and compact Tiguan on sale.

Demand for SUVs is growing, with the models likely to account for 20.1 per cent of global production by 2018 compared with 17.6 per cent in 2012, according to consulting company PwC.

Held back
The VW nameplate's focus on traditional cars, such as the Golf hatchback and Passat saloon, has held back the brand in the US, where rivals have wider SUV offerings.

READ SOME MORE

“The SUV segment is still growing globally, and it’s a key segment for all manufacturers,” said Roman Mathyssek, a Munich-based analyst at Strategy Engineers consulting company.

“The VW brand still has growth potential in SUVs, which could especially help them to build a stronger position in the US and in emerging markets.”

The Tiguan will be updated as a lighter vehicle in 2015 to help lower fuel consumption, and VW is also developing a coupe version and longer variant of the model.

VW may also offer a subcompact crossover, which has characteristics of an SUV and traditional car, choosing between the boxier Taigun and coupe-like T-Roc prototypes displayed at recent auto shows.

In addition, VW plans to build a mid-sized SUV based on the CrossBlue concept to go on sale in the US in 2016.

Cost review
VW has yet to choose the model's production site pending a cost review that includes potential incentives from governments in Mexico and Tennessee. Rounding out VW's offerings in the segment is the Touareg, the brand's first and largest SUV. Officials at Volkswagen declined to comment on the SUV plans.

VW has targeted beating Toyota in annual deliveries by 2018. The new models would let VW challenge more of the Japanese manufacturer’s seven-model SUV lineup, from the RAV4 to the Land Cruiser.

– Bloomberg