Published: Fri, April 14, 2017
Tech | By Constance Martin

VW US chief says sales will recover, announces new SUV

VW US chief says sales will recover, announces new SUV

A top Volkswagen executive says the German automaker plans to build another new SUV at the Chattanooga plant, according to Reuters.

VW Group of America chief executive Hinrich Woebcken told reporters at the NY auto show the automaker also plans to build a smaller five-seat SUV in Tennessee but he declined to say when production will begin.

He gave no timeline on when the new SUV would debut or its intended volume, but said the company is committed to it. We also believe there is room for a 5-seater mid-size SUV, a derivative of the Atlas, based on the MQB architecture.

In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles. After the scandal broke, Volkswagen completely stopped the sale of diesel vehicles in the United States. The company suffered considerable damage to its reputation on a global basis in the wake of the diesel emissions scandal and is now seeking to redress this with a six-year, 72,000 mile warranty for two of its new SUVs.

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Woebcken said the Tiguan Limited will be positioned as an entry model that is slated to be available for several years.

"This warranty further addresses the needs of American buyers head-on", said Volkswagen Group of American chief executive Hinrich Woebcken.

"Volkswagen is looking to get on consumer's radar and consideration list with Tiguan and Atlas", said Stephanie Brinley, analyst for research firm IHS Markit.

Most major competitors to the Atlas and Tiguan offer a 3-year/36,000-mile basic warranty and a 5-year/60,000-mile powertrain warranty.

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