Volkswagen has announced today a million-euro ($653 million) investment that will generate a new SUV designed specially for the SOuth American market. In the coming five years, the investment will be made at the Pacheco, Argentina production facility while the construction of the new SUV is expected to debut in 2020. 

The new model will be based on the MQB architecture and it will be built suiting the requirements of customers across South America. For now we have no confirmation on the powertrain but we think the SUV might come with the 1.4 liter TSI and the 1.5 liter TSI units. 

“We are laying the foundations for the brand’s growth on international markets with Volkswagen’s Transform 2025+ strategy,” VW brand chief executive Herbert Diess said. “South America and Argentina play an important role in this regard. Key elements of the growth strategy are the biggest model offensive in the history of the brand and the systematic regionalization of our business.”