Volkswagen Group will invest more than $3.3 billion (2.8 billion euros) in North America over the next three years to give a boost to its core brand as the automaker seeks to become a key volume supplier in the region.
The spending through 2020 will mostly go toward new models, including two more planned SUVs designed to finally turn VW’s fortunes, after lingering at less than a 2 percent share in the world’s second-biggest car market.
Some 1.2 billion US dollars (1 billion euros) of this will go toward projects in the U.S. The aim is for the Volkswagen brand to achieve a break-even in terms of operating profits in North America by 2020.
The new Jetta is a key element of Volkswagen’s brand campaign in North America. In addition to the Chattanooga-built Atlas, the all new long-wheelbase Tiguan and refreshed, longer range e-Golf were also launched in the market. The plan is to launch at least two new models each year in the U.S. market going forward. Apart from the new Jetta, the Arteon will be launched in America this year, with the new Passat to follow in 2019. Additional SUV models, based on the MQB architecture will follow.
The first of a new family of full battery electric vehicles will be added starting in 2020 and will be based on the newly developed modular electric drive matrix (MEB). The first MEB model to go on sale in America will be an SUV.
Volkswagen launched the largest model offensive in the history of the brand as part of the “TRANSFORM 2025+” strategy. More than 50 vehicles are currently in development. Volkswagen intends to bring more than ten new models and derivate to market globally every year until 2020 and thus further expand its position as a leading volume manufacturer.