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The car that could save Volkswagen in the US is still years away

Sep 21, 2015, 01:07 IST

At the Frankfurt Motor Show last week, Volkswagen unveiled its next-generation Tiguan SUV.

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But according to Car and Driver, the version of the new compact SUV the US will most likely see won't be ready until the end of 2016 at the earliest.

At a show packed with outrageous concept cars and glamourous exotics, the introduced of a moderately priced SUV shouldn't draw a whole lot of attention.

This one did.

The car Volkswagen introduced in Frankfurt gives us a glimpse at what will be the company's future entry into the compact crossover/SUV market.

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The segment is considered to be one of the most important and competitive market segments in the automotive kingdom.

It's also a segment in which VW's current Tiguan is getting destroyed - especially in the US, the world's hottest auto market.

So far this year, consumers have purchased nearly 1.6 million compact crossovers in the US. Of those, only 19,000 have been Volkswagen Tiguans.

That's good for just 1.2% of the market.

As a result, Volkswagen desperately needs to bring a more competitive offering to the segment, which is growing at a healthy 14% per year.

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Although the current generation Tiguan proved to be a rather popular in Europe and abroad, the stylish compact crossover never really caught on in the US. The VW is too expensive and gas guzzling to compete against segment leaders, such as the Honda CR-V, Toyota RAV-4 and Ford Escape.

Unfortunately, the new Tiguan that VW desperately needs today won't be ready until the end of 2016 at the earliest.

Volkswagen

But when it does arrive on our shores, the second generation of Volkswagen's oddly named crossover will be a marked improvement over the current car.

The new Tiguan - which we've only seen in European trim - is much more grown-up compared to the current iteration. The new version is larger, more luxurious, and packed with more technology.

With these improvements and a competitive pricing policy, Volkswagen could have the winner it's looking for.

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Worldwide, VW will offer the gen 2 Tiguan is two different sizes - a long and a short wheelbase. According to Car and Driver, the US market will only get the larger of the two.

Sources also the tell the magazine that US spec cars will be built in VW's plants in Mexico and could be offered with three-row seating.

Volkswagen

Volkswagen Group is currently the world's largest automaker. The German auto giant sold more than 5 million cars in the first half of 2015, surpassing the previous top dog, Toyota.

However, the company's mainstream brand has not fared so well in the US. The Volkswagen brand holds just 2% of the US market, and sales are down 2.8% this year.

Toyota, on the other hand, holds roughly 12% of the market with sales up 2.3% this year.

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The new Volkswagen Tiguan will be available in Europe in April of 2016.

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