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CHICAGO – When Volkswagen launched the Atlas CUV in 2017, it was a big deal because it was the German automaker’s first crossover built specifically for the North American market. But as soon as it arrived, the company ran into complaints about the powertrain, fuel economy and ho-hum interior.

Despite those drawbacks, since its debut, VW says it has sold some 450,000 Atlases.

For the ’24 model year, VW plans to address those issues, starting with the powertrain. Atlas drops the venerable 3.6L VR6 and moves to a new turbocharged 2.0L 4-cyl. as the sole powerplant. The 269-hp, 273-lb.-ft. (370-Nm) engine loses 6 hp,but gains 7 lb.-ft. (9 Nm) of torque compared with the VR6. The previous Atlas 2.0L 4-cyl. produced 235 hp and 258 lb.-ft. (350 Nm) of torque.

VW says fuel economy improves compared with the outgoing VR6, but exact figures aren’t available. The 6-cyl. averaged 20 mpg (11.8 L/100 km) combined.

The Atlas gets a more premium interior with features that are offered or are standard on even the lowest-priced trim.

The Atlas also gets new headlight and taillight designs in which the lights on either side of the vehicle are connected with a horizontal light bar, as well as an illuminated VW logo in the grille.

Highlights of the new Atlas and Atlas Cross Sport:

VW executives say they expect the sales mix to be 60% Atlas and 40% Atlas Cross Sport.

Looking ahead: Buzz. BEVs and Pickup Bed

VW of America sold 301,069 vehicles in the U.S. last year, per the company’s figures. Demand outpaced supply, say executives, because of the semiconductor shortage and other supply chain issues.

While the company is making big bets on electric powertrains, Sales Chief Hein Schafer, says the aim for the next seven years or so is to stay competitive with internal-combustion engines, while the market determines the pace of battery-electric-vehicle adoption.

Schafer says that the company will continue to emphasize utility vehicles in the North American market, as 83% of VW customers are opting for those models. However, VW will continue to sell a few iconic sedans and hatchbacks, namely the Jetta and GTI.

Also, VW plans to continue developing vehicles here for North America. “Local development of the vehicles we sell here” is a definite focus of the organization, says Schafer.

Andrew Savvas, head of sales and marketing for VW North America, says the company continues to look at building a light-duty pickup off the Atlas platform. He adds that if the project advances, it would likely be a BEV. “Our emphasis, though, is getting the SUV/CUV portfolio right,” says Savvas.

Later this year, VW will show the production version of the ID. Buzz., the much anticipated and long-in-development homage to the original Microbus. Now that the Beetle has been discontinued, the ID. Buzz will occupy the nostalgia corner of the VW showrooms.

Schafer also notes that a CUV larger than Atlas, along the lines of the past Touareg, is a natural addition to the North American VW product mix given the desire for CUVs by VW customers, as well as the broader market.

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