VW Reveals Plans for New SUV in South America

Source: Carscoops

German automaker, Volkswagen AG is claiming it is planning to invest an amount of 560 million Euros in Argentina in order to aid with a new product line-up entailing a new VW SUV model at the automotive terminal at Pacheco.

According to Mauricio Macri, the president of Argentina, these partnerships are a key objective of his investor-friendly administration since they won the country’s mid-term elections. The move represents an initiative by the biggest automaker to give more responsibility to centers outside of Wolfsburg for regional operations. Herbert Diess, Volkswagen’s chief executive personally negotiated the investment project with President Macri at a meeting in Pacheco in the move which is going to create 2,500 employment slots.

Source: Motor1.com

Specs for new VW SUV

The new VW model is going to be constructed based on a localized variant of the MQB platform meant to appeal to a large customer base in South America. This will be one of a total of 20 new models scheduled for the market to be introduced by 2020. This will include a revamped pickup range which will probably build from the VW Amarok.

Thus far, the information shows the vehicle will be offered along with the company’s 1.4-liter TSI engine producing at least 150 horsepower which is on the lower side considering the fact it is an SUV. There will be a more advanced 1.5-liter TSI engine though but this will probably not offer much in terms of the outage as it will on the tech front considering features such as cylinder deactivation and other efficiency-boosting tools.

Source: Motor1.com

Cementing a New Market in the Face of Competition

VW is clearly looking toward laying the foundations for the growth of the brand within international markets especially utilizing the Transform Strategy which is from 2025 onwards. The current car output for Argentina thus far climbed to 15.9 percent in October to 45,854 units from a year earlier during the sixth consecutive month of growth as stated by the Association of Automotive Factories. President Macri claimed they were breaking records as more than 780,000 cars have been sold during this year which means production is moving and Argentina is an active market.

Considering a number of brands have ascribed to other markets such as self-driving and in-car features, such as Tesla, Nissan, and Toyota, this is a rather rudimentary approach to VW. They are considering the actual figures on the ground and moving on the basis of what the numbers are saying. In this case, South America happens to be the next big thing with sales that will mirror that of America in a short period of time.

Source: Wall Street Journal

This is probably due to the intense population and economic growth of several countries in the region which was not the case a few years ago. Argentina, for example, was somehow locked out of the international market for a few years. Others had internal strife or poor performing economies.

There are also several different sovereignties to consider which have average if not well-performing economies such as Argentina, Chile, Brazil, Uruguay, and Colombia.  VW is looking toward cementing its presence in the region before it embarks upon technological options that are being championed by its peers.