Volkswagen Considers Moving Tiguan Production to North America

Volkswagen isn’t afraid to build vehicles in North America in order to dominate the U.S. market, but it seems the number of V-Dub models built on our continent may soon grow by one. According Reuters, the company is considering building the Tiguan compact crossover in North America, potentially allowing the automaker to price it competitively against vehicles like the Honda CR-V, Kia Sportage, and Toyota RAV4.

The current 2011 Tiguan has a starting price of $24,540 including destination, which is a bit more than the RAV4 ($23,285), the CR-V ($22,475) and the Sportage ($18,990).

It’s unclear which plant would likely receive Tiguan duty or when the move would take place. VW currently builds the Jetta at its long-running plant in Puebla, Mexico, while the upcoming Passat is being built at the Chattanooga, Tennessee plant which opened just last week. VW plans to build 150,000 units annually out of the U.S. plant.

VW, which sold 7.1 million units last year, has been keen on becoming the world’s number-one automaker by 2018. General Motors sold 8.39 million cars, while Toyota moved 8.42 units. Pricing has long been one of the challenges for Volkswagen, but it appears it is hard at work lowering the cost of entry throughout its lineup. The 2012 Passat, for example, will have a starting price of $20,765, barely coming in lower than the midsize sedan kings like the Camry and Accord.

Source: Reuters