Volkswagen now selling Chattanooga-made Atlas in over 30 nations, eyeing five-seat Cross Sport SUV for export

Prototypes of the five-seat Volkswagen Atlas Cross Sport are being assembled at the automaker's Chattanooga plant. Like the seven-seat Atlas, the Cross Sport is expected to be exported to other countries. / Contributed rendering by Volkswagen
Prototypes of the five-seat Volkswagen Atlas Cross Sport are being assembled at the automaker's Chattanooga plant. Like the seven-seat Atlas, the Cross Sport is expected to be exported to other countries. / Contributed rendering by Volkswagen

Fast fact

By 2025, every second VW sold throughout the world will probably be an SUV, according to the automaker.

The Chattanooga-made Volkswagen Atlas SUV is now sold in over 30 countries around the world, and VW expects to export the soon-to-be-assembled five-seat Atlas Cross Sport, an official said.

But no decision has been made on whether to export the electric SUV slated to be assembled by 2022 at a new $800 million facility to be built next to the existing Chattanooga plant, according to Volkswagen.

Volkswagen Group of America spokesman Mike Tolbert said exporting is anticipated for the Atlas Cross Sport, the follow-up to the seven-seat Atlas that hit the market in 2017.

"But a final decision on locations has yet to be made" about where the Cross Sport would be exported, he said.

VW is embarking on the largest SUV offensive in the company's history. By 2025, every second VW sold throughout the world will probably be an SUV, according to the German automaker. That's compared to every fifth car sold now.

VW expects especially strong growth in SUV sales in North and South America as well as in China. By 2025, Volkswagen will be offering more than 30 SUV models worldwide.

"SUVs are becoming increasingly popular with our customers throughout the world," said Jurgen Stackmann, a member of the Volkswagen brand Board of Management responsible for sales.

In Chattanooga, the automaker is launching two new models at about the same time. The five-seat Atlas is in the prototype phase and ramping up toward full production.

Also, plant spokeswoman Amanda Plecas said assembly has started for the redesigned 2020 Passat midsize sedan.

"The 2020 Passat will be in dealerships this summer," she said.

The seven-seat Atlas is the biggest vehicle VW has ever produced in the United States. While the SUV was designed and built for Americans, officials foresaw sending it into countries in Central America, South America, the Middle East and even in markets such as Russia, Belarus and South Korea.

Sales figures to those countries aren't available though they aren't considered huge. Still, the numbers count in the production totals in Chattanooga.

Just this week, the Atlas SUV was named "Best Large Utility" in the 2019 MotorWeek Drivers' Choice Awards announced at the 2019 Chicago Auto Show. It's the second year in a row that Atlas topped its class in MotorWeek's awards.

"This is another great moment for Atlas," said Scott Keogh, CEO of Volkswagen Group of America, adding that "buyers and critics alike are letting us know that we're hitting the mark with this seven-seater SUV."

VW, saying a 5-seat version of the Atlas SUV fits in one of the hottest-selling parts of the U.S. market, last year agreed to spend $340 million to assemble the Cross Sport.

The new SUV will have four doors, like the Atlas, though just two rows of seats instead of three.

Matt DeLorenzo, senior managing editor for Kelley Blue Book, said that as the sales of SUVs increase, automakers are looking a different ways of "slicing and dicing" the segment.

Some are sportier, others are two-row versions while some have 6-cylinder engines, he said.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.

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