Volkswagen Planning Subcompact SUV based on Up!

German newspaper Handelsblatt is reporting that Volkswagen is planning a whole family of vehicles based on the recently-introduced Up! model, including a small SUV. The consideration of a subcompact SUV is largely based on the favorable public reaction to the Buggy Up! and Cross Up! concepts that debuted at the 2011 Frankfurt Motor Show.

Albrecht Reimold, the plant manager in charge of the Bratislava, Slovakia factory where the current Up! is produced, said the Up! was always intended to be a vehicle family, and not just a single model, but would not go on record with specific production plans for the reported new model.

The Up!-based SUV would reportedly start below $26,000, approximately $6000 less than the Tiguan model starts at in Germany. For comparison, the current U.S.-spec Tiguan starts at $23,660 including destination.

Like the Up! on which it would be based, as well as the subcompact Ford EcoSport, the SUV version of the Up! would likely not be sold in the U.S. market.

The article notes that sales of SUVs are up 11.6 percent in Germany, and are projected to top 480,000 by 2015, representing 15 percent of total new vehicle sales in the country.

Do you think VW should sell a SUV in the U.S. market smaller and cheaper than the Tiguan? Or stick with what it has? Share your thoughts below.

Motor Trend