Volkswagen’s Brazilian division (Volkswagen do Brasil) has announced that it will develop a new model based on the modular transverse toolkit MQB, which will premiere in spring 2020.

The model, currently referred to as the New Urban Coupe, will be produced at Volkswagen’s Anchieta plant in Brazil from 2020. The vehicle will also be built in Europe later on from 2021, to be sold in other international markets. “For the first time in our history we will be offering our very own vehicle concept on the international market, and sharing design, technology and know-how from Brazil with the world,” said Pablo Di Si, president and CEO of Volkswagen Latin America.

This initiative is part of the carmaker’s restructuring programme to support business opportunities in the South American market. Under this regionalisation strategy, the company’s product offensive will see 20 new models for Brazil, which is viewed as a key market in the region.

Between 2016 and 2020, Volkswagen is investing seven billion Brazilian real (BRL), or approximately 1.5 billion euros in Brazil to develop new products as well as digitalisation and technological innovations. With these investments the company is strengthening the development of local products for customers in South America in particular, but also for other markets.

Based on the sketch of the New Urban Coupe, it appears to be a compact, five-door crossover with coupe-like styling. The MQB-based vehicle will reportedly have a 2,560 mm wheelbase, and be offered with either a 1.6 litre naturally-aspirated four-cylinder packing 108 hp, with a choice of a five-speed manual or six-speed automatic. An alternative is a 1.0 litre TSI with 114 hp and a six-speed auto.