VW is planning to launch a new sub-compact SUV in the U.S. and China, codenamed “Volks-SUV”, which is German for People’s SUV, according to VW CEO Herbert Diess.

The new crossover will slot under the Tiguan and will not be offered in Europe, where the T-Roc occupies this spot in the brand’s range. VW plans on selling 400,000 units per year, Automotive News reports.

VW officials said that the T-Roc is better suited to Europe’s tastes as it has smaller dimensions and a lower roofline than the upcoming ‘Volks-SUV’, implying that the newcomer will adopt a more square and less funky shape. Like most models of the Group these days, it will be based on the flexible MQB platform.

Diess said that the new crossover will be first produced by the SAIC-VW joint venture in China, with sales to launch this August. From 2020, the German automaker will expand production to other regions, including Mexico, Russia and Argentina.

“We will supply the U.S. from Mexico,” Diess said, thoughhe didn’t give a specific date for a U.S. launch. “We call it internally Volks-SUV – the production car won’t have that name – because it turned from a regional project into a global project,” sales chief Juergen Stackmann added.

The powers-that-be at VW approved the design of their new SUV, which will become VW’s first China-developed car to be exported outside of the country, last week.