SOUTHFIELD(Michigan), Sept 1 — Volkswagen AG is seeking to end its bit-player status in the US with an expanding line-up of the crossovers and SUVs that Americans love to buy, aiming to more than double market share in the coming years.

“We have a plan to become successful here in the United States in the next years as a relevant volume player,” Herbert Diess, global head of the Volkswagen brand, told reporters at the company’s factory in Chattanooga, Tennessee. “We can’t win America over in two years’ time. It’s a 10-year plan, but we are committed.”

The German carmaker, which now sells three sport utility vehicles in the US with this spring’s addition of the Atlas, plans to introduce a fourth utility model by 2020, said Hinrich Woebcken, Volkswagen of America’s chief executive officer. That’s part of its plan to ramp up to 19 total SUV or crossover models worldwide by that year, according to Diess. The goal is to eventually exceed 5 per cent market share in the US, up from 1.9 per cent this year through July.

The plan to expand its US share of the lucrative SUV segment comes as VW ramps up output of its newest large vehicle, the Atlas. VW’s factory in Chattanooga is producing 400 Atlas SUVs a day, and still has capacity to fill, said Antonio Pinto, head of the plant. Still, US sales of the seven-seat SUV slipped in July to 1,306 amid a summer holiday break after reaching 2,413 in June, its second month on the market. The long-awaited model, with a name chosen in consultation with US dealers, is a key part of VW’s strategy to meet the needs of American consumers with growing families.

VW aims to become “relevant” in the US, as “right now we are a niche player,” Woebcken said, adding that the brand is committed to launching two new or redesigned models a year in the country. “We want to deliver and not only announce numbers.”

Ramp-up plans

VW has opportunities to tap into growing demand for SUVs around the world, not just the US. Last week in Italy, Diess presented the T-Roc crossover, which is sized to compete in the fast-growing subcompact segment that includes the Nissan Rogue Sport, Toyota C-HR and Honda HR-V. The Tiguan was lengthened for the 2018 model year and comes with a standard third row in front-wheel drive versions. Diess said yesterday that VW is still deciding whether the T-Roc will come to the US market.

VW is targeting 40 per cent of its worldwide sales to be SUVs by 2020, up from less than 15 per cent now, Diess said. The company is also planning to produce some electric models in the US, though it’s too soon to say when, he said.

The Tennessee plant, which also assembles Passat sedans, has added about 900 workers over the last year, bringing total employment to about 3,200, said Scott Wilson, a factory spokesman. It’s also almost doubled the number of robots to 850, he said. Output of the SUV started in December. The factory produces about 45 total vehicles an hour, up from 35 when it was only making the Passat, after expanding the floorplan by 26 per cent to accommodate Atlas production. — Bloomberg