VW reveals new strategy for South America, new SUV and major investment planned image

The German automaker wants to delete the entire Dieselgate history with what it’s calling the “biggest model offensive in the history of the brand.” And it seems South America has a well-defined role in the plan.

According to their new strategy, VW is looking to reshape its South American regional business by allowing more independence to the local management as opposed to previously directing the responsibilities from Wolfsburg. They are also going to invest $653 million in the Pachecco assembly facility from Argentina, and after 2020 they will have a completely new SUV on the lines there that will cater to the South American market.

The new model is going to use a local version of the global MQB architecture and will be “targeted to appeal to a broad customer base on the South American continent.” It’s actually just one of a total of 20 models provisioned for the market and arriving before the turn of the decade, ranging from a reshaped pickup family to even more locally-produced SUV models. “Volkswagen believes in the great potential of the South American continent,” Volkswagen South America’s CEO Di Si comments. “The investments create the optimal conditions for the efficient production of our new SUV – built in Argentina for the markets in South America.” Plans include the seven-seat version of the Tiguan, as well as a Golf-sized crossover, according to rumors a rebadged Skoda Karoq, apparently named the Tharu.