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Volkswagen has its eyes set on competing against the Subaru Outback with an all-wheel-drive, Golf-based Jetta SportWagen due in the U.S. in late 2014.

The German automaker has approved the model, with sources saying that it will be similar to the Alltrack concept shown at the 2012 New York Auto Show, meaning the all-wheel-drive model will have higher ground clearance and body cladding.

Volkswagen, which currently sells a Passat Alltrack in Australia, is looking to steal away some of the Outback’s market share, which is Subaru’s best-selling model in the U.S. If the German automaker can keep costs down on the all-wheel-drive variant, it could compete with the Subaru Outback, which is priced from $23,495 including destination. Currently, the Volkswagen Jetta SportWagen in front-wheel-drive form is priced at $21,390.
See more VW Alltrack photos at AutoGuide.com
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