We knew for some time that Volkswagen officials were warming up to the idea of expanding the brand’s lineup of SUVs with new models, and now, a spokesman for the German automaker has confirmed the news.

Speaking to Autonews, VW spokesperson Peter Thul told the publication that the company has decided to build two models, including a compact SUV smaller than the Tiguan and the other, a larger crossover with a seven-seat layout to appeal to North American drivers and offer an alternative to minivans.

Volkswagen’s current SUV lineup includes two vehicles, the compact-sized Tiguan and the mid-size Touareg.

The German automaker believes there will be a strong market demand for smaller crossover models in the U.S. in the years to come as consumers are increasingly turning towards more fuel-efficient vehicles with greater functionality than regular models.

Note: VW’s 2011 Cross Coupe Concept featured in these pictures

PHOTO GALLERY

Volkswagen-Cross-Coupe-Concept-Carscoop19Volkswagen-Cross-Coupe-Concept-Carscoop25Volkswagen-Cross-Coupe-Concept-Carscoop16