VW Solves Issues In Building A Low Cost Car - Plans New Model Around $8000

Volkswagen's management board will sign off on a budget car for emerging markets after ending a long struggle to meet cost targets for the vehicle, a German business magazine said.

VW's senior executives will approve the car in the next few weeks and the supervisory board is expected to sign off on the project by the summer, Manager Magazin said in a report.

VW has been trying for more than a year to hit internal cost requirements for the vehicle, which would likely sell for between 6,000 euros ($8,300) and 8,000 euros and be built in China, the biggest market for budget cars.

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ParadoX - 3/20/2014 5:29:07 PM

-1 Boost

My guess is that it will be hardly what most of us would call a "car". I think it is going to be like somebody put wheels and a windshield on a bathtub. Econo-boxes are frightful little things.

spruce_rd - 3/20/2014 5:56:07 PM

+3 Boost

"...and be built in China, the biggest market for budget cars..."

They forgot to add,

"...and be built in China, where there is no labor cost for 6 yo child..."

MattDarringer - 3/20/2014 10:13:22 PM

+1 Boost

VW can't figure out many things. It can't figure out how to build the Up! to do battle with the Chevy Spark and Mitsubishi Mirage. The former is a 35K per year rate of sales and the latter is on track for about 30K units. VW cannot figure out how to bring the Polo to the USA for the fiercely competitive Fit/Fiesta/Sonic wars. The fact that VW will likely NOT put their name on the car shows their arrogance.

scenicbyway12 - 3/20/2014 10:33:50 PM

+1 Boost

Waiting for the $15,000 Audi .5

JDMUSMuscle - 3/21/2014 12:05:36 AM

+2 Boost

Whenever I hear the name Volkswagen, I only think of one thing. A failed brand.

MattDarringer - 3/21/2014 8:45:04 AM

0 Boost

So very true. If they could dump the influence of Der Fuhrer Piech and hire Mulally, within 5 years they would be brilliant.

carsnyc - 3/21/2014 12:48:46 PM

+1 Boost

VW is not a failed brand, but in the US (and the rest of the Americas) it is seriously falling behind. So it needs to pay attention to the current lineup re. a quick and worthy 2015 replacement; and more than anything reliability (at least in the minds of consumers).

MattDarringer - 3/21/2014 7:39:31 PM

+2 Boost

It is a "failed" brand because it has no direction, quality and reliability are dismal, and sales are skidding.