Volkswagen of America revealed the second-generation Atlas Cross Sport on Aug. 10, and the redesigned five-seat SUV goes on sale in early 2027. Volkswagen says specifications and pricing will be announced before launch. Like the three-row Atlas, it is assembled at Volkswagen's plant in Chattanooga, Tennessee.

The stakes are significant. The Cross Sport went on sale in 2020, and Volkswagen says more than 220,000 have been sold in the U.S. since. The Atlas family accounts for about a third of the brand's U.S. sales.

Lower and sleeker than the Atlas

At 195.6 inches long, the Cross Sport is 5.4 inches shorter than the 2027 Atlas seven-seater and 2.1 inches lower, with sharply raked rear pillars and a short rear overhang. Up front are stacked double LED headlights and a masked upper grille; double light lines and an illuminated VW badge are available on every trim except the base model. The tailgate now sits flush with the rear bumper. The entry trim rides on 18-inch wheels, and the rest get new 20- or 21-inch designs. New colors include Dark Sage Metallic, Blackberry Metallic and Sandstone.

"Because the cabin is low and the rear overhang short, it gives the car a really sporty stance," said William Lee, exterior designer, Volkswagen.

More power, same 5,000-pound towing

The only engine is the latest evo5 version of Volkswagen's EA888 turbocharged 2.0-liter four, now with a variable-geometry turbocharger. It makes 282 hp and 258 lb-ft, 13 hp more than before, and Volkswagen expects better fuel economy despite the gain. An eight-speed automatic is standard, as is front-wheel drive; 4Motion all-wheel drive is available on every trim. Towing capacity stays at 5,000 pounds with a factory hitch. Volkswagen says a hybrid will arrive with the midcycle refresh. The SUV moves to the upgraded MQB Evo architecture.

A cabin built to compete upmarket

The interior is all new, with soft-touch surfaces, standard gray wood trim and a looping dashboard design. The base model gets a 12.9-inch touchscreen, while Volkswagen says 90 percent of Cross Sports will have a 15-inch screen. Every version has a 10.25-inch digital instrument cluster, a new Driver Experience Dial for volume and drive modes, Qi2 wireless charging for two phones and five USB-C ports. Upper trims add front-seat massage, and the top two trims offer Varenna or Nappa leather. A power liftgate with Easy Open, rear sunshades and front and rear parking sensors are newly standard.

Safety upgrades include a new front center airbag, bringing the total to seven. Travel Assist now supports driver-initiated lane changes, and Emergency Assist Plus can guide the vehicle to the side of the road if it detects a medical emergency. Park Assist Plus is standard on the top trim, and Predictive Adaptive Cruise Control, which adjusts speed for curves, roundabouts and exits using navigation data, comes on the top two. Connected services move into a single In-Vehicle Premium subscription for 2027.

What buyers should know

Without prices or EPA figures, the key comparison for now is with the outgoing model: more power, more standard equipment and a more upscale cabin in a slightly sleeker package. Volkswagen marked the start of 2027 Atlas family assembly in Chattanooga on Sept. 29, and the Cross Sport is due at dealers in early 2027.