VW sedan to come with 3 engine options

Buyers of Volkswagen's Chattanooga-made midsize sedan will have three engines from which to choose along with eight exterior colors and about three interior tones.

As Volkswagen sales climb in the U.S. this year, officials are slowly revealing more about the new car on which the German automaker is pinning its hopes to drive figures even higher in 2011 and beyond.

"We feel very positive about it," said Frank Fischer, chief executive of VW's Chattanooga operations, about the vehicle on which production is to start early next year.

Fischer said the car will have three engines: a 2.5-liter, five-cylinder; a 3.6-liter, six-cylinder; and a 2-liter, four-cylinder clean diesel.

As of now, he said VW expects the version with the 2.5-liter engine to be most popular.

The plant CEO said VW is projecting the diesel offering to make up almost a third of sales and the 3.6-liter about 10 percent.

"Of course our customers will tell us," he said.

Michelle Krebs, senior analyst for auto website Edmunds.com, said VW is strong in the diesel segment, though Americans need to get over "the old diesels" of decades ago which were often smoky and noisy.

"It's a gradual education," she said.

Fischer didn't reveal what exterior colors will be used, but he quipped that "silver may be one of them." He didn't give details on interior color schemes.

The yet-unnamed car is all-new and designed to meet the tastes of American motorists, according to VW. It's expected to be priced to better compare with competitors in the segment such as Toyota Camry, Honda Accord and Ford Fusion than the current Passat.

A base 2011 Camry starts at a little less than $20,000, according to Toyota.

u.s. sales

VW wants to sharply ramp up sales in the United States. Through October, VW brand sales are up 20.3 percent over a year ago, officials reported Friday.

The entire VW group, which includes Audi, VW, Bentley and other brands, delivered 5.98 million vehicles worldwide in the period, up 12.4 percent from 2009.

In October, group sales rose 9.8 percent while the total auto market was up 4.5 percent, the company reported.

"We are continuing to gain global market share," said Christian Klingler, group board member for sales, in a statement.

The German automaker cited high growth in the U.S. and China for rising sales.

Fischer said VW's sales numbers in the U.S. are outperforming the rest of the market. VW is aiming a tripling sales in the U.S. to reach the 1 million mark by 2018.

The Chattanooga plant will have capacity to produce 150,000 units annually and employ more than 2,000 people.

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