VW unveils new five-seat Atlas Cross Sport SUV to be built in Chattanooga

Volkswagen on Tuesday unveiled its newest SUV, the Atlas Cross Sport, saying the five-passenger vehicle pegged for assembly in Chattanooga has both "power and presence."

The Cross Sport concept, 7.5 inches shorter than the seven-seat Atlas that's already produced at VW's Chattanooga plant, was unveiled at the New York International Auto Show.

Volkswagen revealed a concept of its new five-seat SUV based off the seven-passenger Chattanooga-built Atlas Tuesday, March 27, 2018, at the New York International Auto Show. The Atlas Cross Sport, which the German automaker called "a near-production" version, features a coupe-like profile and a sporty stance.

"There's no such thing as standing still in the auto industry," said Hinrich J. Woebcken, Volkswagen Group of America's chief executive, who noted that the Atlas "symbolizes a turnaround for the brand in the U.S."

The near-production concept Atlas Cross Sport, on which assembly will start in late 2019, features a coupe-like profile and a sportier stance than the seven-passenger version, according to VW.

The exterior has a two-bar grille at the front instead of the three on the seven-seater. Unlike the bigger Atlas, the grille crossbars in the five-seater are illuminated in white and operate as LED daytime running lights, the company said.

The profile of the Cross Sport concept combines "powerful proportions with sleekly raked C-pillars" along with short and rear overhangs, VW said.

Inside the four-door Cross Sport concept, the vehicle has two rows of seats instead of the three in the larger Atlas. A horizontal design remains dominant, emphasized by the instrument panel and infotainment screens, according to VW.

The driver and front passenger can manage all infotainment functions and basic vehicle configuration via a 10.1-inch touchscreen with proximity sensors and gesture control.

The concept has a plug-in hybrid drivetrain with 355 horsepower and an anticipated 26 miles of all-electric range, the company said.

The actual production vehicle will be built alongside the seven-passenger Atlas and is expected to have conventional powertrains similar to the Atlas.

Pricing for the Cross Sport wasn't announced.

Last week, VW announced it would spend $340 million to bring the five-seat Atlas to the U.S. market.

Volkswagen employs nearly 3,500 people in Chattanooga making the seven-passenger Atlas and the Passat midsize sedan. But, with American motorists buying more and more SUVs and pickup trucks and sedan sales falling, the German automaker is bolstering its lineup.

In February, Atlas or Tiguan SUVs accounted for 54 percent of total U.S. sales, Volkswagen of America reported.

Mike Randle, publisher of Southern Business & Development magazine, said that when he flies out of Montgomery, Ala., he passes over a Hyundai production plant that builds sedans. Those vehicles sit in a lot in large numbers at the plant waiting to be shipped to dealers, he said.

"I've got five kids and they have eight SUVs," Randle said.

Rebecca Lindland, an industry analyst for Kelley Blue Book, said she likes the idea of VW producing the five-seat Atlas.

"The seven-seater is doing quite well," she said.

In addition to the Atlas Cross Sport, the company today is expected to unfurl a concept of a midsize pickup truck that also could be produced in Chattanooga should VW make that investment.

Volkswagen's new five-seat Atlas and the seven-passenger version are built on the company's versatile modular transverse matrix architecture. Called MQB, the platform also could hold the Atlas-based pickup if the automaker decides to make that vehicle.

Antonio Pinto, who heads the Chattanooga factory, said the plant builds "wonderful cars" and employees hope to assemble more models.

"We want to be best in class," he said.

Contact staff writer Mike Pare at mpare@timesfreepress.com or 423-757-6318.

The Atlas Cross Sport concept, a five-seat version of the Chattanooga-made Atlas SUV, is slated for production in late 2019. The company unveiled the Cross Sport at the New York International Auto Show. "There's no such thing as standing still in the auto industry," said Hinrich J. Woebcken, Volkswagen Group of America's chief executive, who noted the Atlas "symbolizes a turnaround for the brand in the U.S."