By William Boston / Wall Street Journal
Volkswagen is set to announce details of a planned expansion of its Mexican plant to build a new, longer version of its Tiguan sport-utility vehicle for the U.S. market, a person familiar with the situation said, part of the company’s strategy to offer more SUVs for American customers.
Volkswagen Chief Executive Martin Winterkorn said in July that the next version of the Tiguan wouldn’t be built in Germany. VW officials told The Wall Street Journal in December that the new vehicle would be built in Mexico, a formal decision pending further negotiations.
Those negotiations have concluded and production of the Tiguan is expected to commence next year, three people familiar with the situation said. The new version of the Tiguan is about 25 centimeters longer than the current model, allowing either a 7-seat version or more trunk room.
The company is expected to announce details of the planned expansion at its annual results news conference March 12.