Volkswagen Reveals Production Tiguan

Less than 18 months after first signaling its intent to enter the burgeoning market for compact sport-utilities with its fanciful Concept A showcar, Volkswagen has pulled the wraps off the definitive production version of its new all-wheel-drive Tiguan.

The new five-seater is based on the platform of the Golf and will feature the turbocharged, 200-horsepower, 2.0-liter four-cylinder engine from the GTI plus the Haldex all-wheel-drive system from the R32.

With the Tiguan, VW intends to lock horns with popular compact SUV offerings like the Honda CR-V and Toyota RAV4, while providing buyers with a cheaper alternative to more prestigious entries such as the BMW X3 and the upcoming Mercedes-Benz GLK.

The Tiguan is set to make its public debut at the Frankfurt auto show in September before going on sale across Europe in November. It will arrive in North American showrooms next June priced at around $27,000, slightly above the Japanese competition, Wolfsburg-based sources say.

The Tiguan will be assembled at Volkswagen's Wolfsburg factory in Germany alongside the Europe-market Touran. Capacity is put at 120,000, including 40,000 per year for North America. This target sounds modest considering the popularity of the CR-V and RAV4 in the U.S.