Volkswagen is going "right into the heart" of the mid-size sport utility vehicle market with a new concept called the CrossBlue, VW of America CEO Jonathan Browning said in a "First on CNBC" interview Monday.
"We're very strong on the sedan side, and now we're building that presence on the SUV side," Browning said on "Squawk Box" from the Detroit Auto Show.
(Read More: Detroit Auto Show Special Report)
The CrossBlue "goes right into the heart of the mid-size SUV" market, he said, positioning it between the Tiguan and Touareg.
Browning also called VW's entire line the most "affordable German engineering has to offer."
Volkswagen's U.S. sales increased 30.6 percent in 2012 to a record-breaking 580,000 units.
(Read More: BMW Shows Off Concept 4 Series Coupe )
(Read More: Ford on 'Front-End' of Worldwide Profit Growth: CEO )
(Read More: Americans Rewarding Themselves Again: Bentley COO)
—By CNBC's Phil LeBeau; Follow him on Twitter @LeBeauCarNews
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