The two-row Atlas will be built alongside the seven-seater in Chattanooga, Tennessee.
Volkswagen has announced plans to reveal a five-seat Atlas at the New York International Auto Show.
The company is apparently serious about filling in its SUV and crossover lineup as customers continue to gravitate toward high-riding models.
Like the seven-seat Atlas, the two-row variant has been designed specifically for the American market. Both will be manufactured in Chattanooga, Tennessee, alongside the Passat.
A teaser sketch shows the smaller Atlas with a more streamlined profile and a unique facade to help provide a bit more visual distinction between the siblings.
Volkswagen says a concept version will be unveiled in New York, though it will presumably be presented in close-to-production form.