Primarily aimed at the US market, the model is regarded by VW North America as vital if it is to hit its 2018 target of 800,000 sales a year, according to news agency Headlineauto, which says the model could also be launched in China and Russia.

It is still to be decided where the production version will be made, but it will be in one of VW's North American plants – Chattanooga, Tennessee or Puebla, Mexico. Unlike Chattanooga, Puebla is already equipped to use the platform that will underpin it, but the plant is currently working to capacity.