Volkswagen Tells Dealers It Will Build More Varieties of the SUV

Volkswagen is committed to launching not one—but at least two new sport-utility vehicles for American buyers.
That news follows a meeting at the German VW headquarters with the U.S. Dealer Association.
The company says it will introduce an entry-level SUV in the U.S., in addition to a two-door coupe derivative of the midsize SUV that begins production in Chattanooga later this year.

American Volkswagen dealers are eager for the company to offer the coupe and the entry level SUV, which would come in at a price below that of the Tiguan, currently Volkswagen’s smallest crossover. The exact configuration has not been announced.
Mark Guild is an associate professor for business and management at Southern Adventist University.

MARK GUILD, ASSOCIATE PROFESSOR, SOUTHERN ADVENTIST UNIVERSITY “They’re measuring through various studies and research, trying to understand what do customers really want.”

Chances are, Chattanooga will play a big part in any SUV production in this country. The 7 passenger SUV is already set for production later this year.

MARK GUILD “I haven’t heard exactly what they’re after, but there’ll probably be two different sizes ..one smaller and one larger. Toyota went through the same thing probably not three or 4 years ago ..and decided to come out with 3 or 4 different sizes of SUVs.”

The announcement of the new vehicles couldn’t come at a better time. Volkswagen sales in the U.S. are plunging due to the auto maker’s emissions-cheating crisis and the company’s halt to sales of affected diesel-powered vehicles, which are now sitting on dealer lots.
The company is open to discussing some form of settlement for its U.S. dealers, the association said.

MARK GUILD “If you put this little diesel behind us ..its not little, its big…put that behind us for a minute…this company has a fantastic reputation, putting out a very good product at a very good price point.”

Professor Guild says the quality of Volkswagen products will help them through the current crisis.

MARK GUILD “Fortunately the public is very forgiving if a company puts out a very good product and backs it with customer service.”