The Rabbit is currently the most fuel-efficient gasoline-powered vehicle in Volkswagen's U.S. fleet, getting around 26 mpg on the EPA's combined city/highway cycle. But V-Dub wants something better for the U.S. market. Speaking with Bloomberg, VW CEO, Stefan Jacoby revealed that the automaker is considering bringing a subcompact vehicle, similar to the Polo, to the U.S.
With the Toyota Yaris rated at 32 mpg and the Honda Fit coming in at 31 mpg (combined city/highway), Volkswagen is hoping to meet or exceed the competition. While it's unlikely we'll see the current Polo on U.S. shores anytime soon, it's expected that the next generation will be available in the States in 2010 when the new Jetta is released, followed by a new midsize sedan that will replace the Passat.
The additions and revisions to VW's product line is an effort by the automaker to boost U.S. sales to 800,000 units by 2018, nearly tripling the 230,571 vehicles it sold in 2007. VW is also looking to build a new engine plant in Mexico, along with its recently announced Tennessee plant.
As reported previously, Volkswagen is about to undergo a design renaissance that puts a premium on simplicity, style and, apparently, more Scirocco design cues. According to AutoExpress, the first model to benefit from Walter Da'Silva's new dictum is the 5th generation Polo, which is expected to go on sale sometime next year sporting a new front end inspired by the recently released Scirocco.
The new model is based off the PQ25 small car platform that currently underpins the SEAT Ibiza. As such, the dimensions will remain, but the interior will be larger and will include upmarket materials, soft-touch surfaces, a Scirocco-inspired dash, MP3 inputs, Bluetooth connectivity and the possibility of a sat-nav docking station that allows portable units to be removed on the go.
A range of gasoline and diesel mills, including 1.4- and 1.6-liter FSI fours, a supercharged, 138 hp 1.4-liter and a 168 hp GTI version, will provide motivation and all models will have the option of being fitted with VW's new seven-speed DSG. Expect three- and five-door models to be released at launch and then joined by a coupe-cabrio version sometime in 2010.
click above for high-res gallery of the Volkswagen up! Space concept
Volkswagen may be serious about returning to its "people's car" roots by importing a small vehicle to the U.S. with a turbocharged 1.4-liter engine. Stefan Jacoby, CEO of Volkswagen Group of America, told Automotive News that something like the Polo could fly here in the States, as well as "lifestyle" vehicles like the smart and MINI, and something he described as a "little bit SUV-looking and a little van."
The inclusion of a new, economical model into Volkswagen's lineup could be based around the up! concepts that have made appearances on the auto show circuit this past year, and Jacoby hopes that pricing could be set in the $13,000 to $14,000 realm. The move is in an effort to capitalize on American's supposed desire for more fuel-efficient models that won't break the bank and cause less cringing at the pumps. However, despite Jacoby's comments about small vehicles, VW is still contemplating a return of the Phaeton to the U.S. – something that's directly opposed to its desire of become a more affordable marque for the masses.
"Do you need the Polo?" That's going to be Volkswagen chief Martin Winterkorn's query to US dealers when he meets with them this week. The answer could determine whether or not we see a sub-Golf sized VeeDub here in the United States. Rising fuel prices have made small cars big again, and VW's taking a hard look at capitalizing on that. The inrush of Volkswagen's competitors to smaller models also makes the segment hard to ignore. BMW's got the hotly anticipated 1-series, Daimler's trend-tastic Smart has been foisted upon us, Saturn's slick Astra is nearly here, and Ford's threatening to give us the Fiesta in a couple of years, too. If we were a VW dealer, our answer to Winterkorn would be a resounding "YES!"
Volkswagen has been struggling here in the US, but in emerging markets the German automaker is among the best. VW has been a big player in China since way before it was cool, and now Mr. Winterkorn and co. are focusing their attention on the booming India market. VW is planning on producing 240,000 vehicles per year in India by 2012, and it's using two small cars to supply much of the volume. The size and price of the Polo compact and the upcoming Up! minicar are perfect for the India market, and Europe's largest automaker plans on building both vehicles at its new plant in Chakan. Up! will go head to head with its low-cost Indian market competition with a price tag in the $7,500 price range.
The Passat has already been on sale in India since November, the next generation Jetta and the ultra-luxury Phaeton are scheduled to hit India's VW dealerships in the next couple years. With VW's vast expertise making and selling its cars in low-cost markets, the company that created the original Beetle has a great chance to make hay in the land of Gandhi and the Taj Mahal.
High fuel prices have started to change the way Americans look at transportation, and several automakers are rushing to market smaller, more fuel efficient vehicles onto US roads. Daimler Benz is in the final stages of launching the Smart fortwo city car here in the US, and Volkswagen is looking at entering the fray with their own mini compact, the Up!. The stylish Up! was unveiled in Frankfurt on Monday, and Adrian Hallmark, head of Volkswagen of America, has already informed Wolfsburg that the US market is interested.
It's hard to gauge how the fortwo will do here in the States due to its freakishly small size and seating for only two, but the VW Up! concept has a rear-engine, rear drive configuration with room for four. A sedan with roughly the same amount of interior space as a previous generation Golf will likely be available for US consumers if the vehicle goes to production in the next few years. We just hope VW can achieve incredible fuel economy with the good looks of the concept, while offering the Up! at the low prices that once made the original Beetle such a smash hit.
While the new Volkswagen Eos may have filled a hole left by the recently discontinued Cabrio, there is likely a market for a smaller drop-top in Volkswagen's lineup. A convertible version of the Polo may appeal to buyers looking at the Peugeot 206 CC or the Opel Tigra TwinTop, so Bild.de commissioned an artist to lop the roof off the Polo GTI, giving us an idea of what to expect.
While Volkswagen hasn't mentioned the possibility of a cabrio Polo, it wouldn't be hard to make a case for it, particularly if if cost was kept down by utilizing a canvas roof instead of a more complex, and expensive, folding hard-top.
Bild.de predicts that the VW Polo GTI Cabriolet could come to market as early as 2009, with a price of around 16,000 to 18,000 euro.
Volkswagen makes good-looking vehicles with terrific interiors, very good fuel economy, and spirited driving dynamics. In the US, those virtues alone don't make a high volume automaker, as price tends to play a major role in buyer's decisions. Due to the strength of the Euro, VW has much higher fixed costs than its competitors, even when production in Mexico is taken into account. As a result of their large financial burden, Volkswagens usually cost more than most of the competition. To strengthen their competitive position and leverage cheap labor in developing countries, VW is planning on producing vehicles in China for the US market.
VW, along with partner SECI Motors, is a juggernaut in the land of the Great Wall, as the Germans automaker has been entrenched in China since 1984. The SECI/VW partnership will replace the Chinese market Passat Lingyu with a sedan that will also be sold on our shores. Many automakers have utilized China's inexpensive labor for cheaper parts, but as of yet, no US-sold vehicles have been assembled there. If VW can make cars in China that can meet US safety and emissions standards, Europe's only volume automaker with a presence in the US will go a long way towards closing the cost gap.
Volkswagen is yet another car company that sees vast potential in Russia, due in part to the large quantity of low-cost automotive suppliers in the region. The automaker is targeting sales of 200,000 units per year from the home of Ivan the Terrible by 2009 or 2010, up from about 50,000 this year. VW has has put its money where its plans are, too, with a new plant in Kaluga, which sits between Moscow and St. Petersburg. The facility will eventually produce 150,000 vehicles per year, starting with the Skoda Octavia in October, followed by the Jetta and a Polo-like vehicle.
It's interesting that VW is having so much success in Europe and in emerging markets like Russia and China, yet the Wolfsburg-based company is still looking to make a similar impact in the US.
We've seen some strange marketing campaigns from automakers before, but this one is just dumb. The folks in charge of marketing over at Volkswagen decided that they needed some hands-on advertising to push their little Polo, so they came up with large magnets that look like car dents to put on other people's cars. The idea is to show how tough the little Polo is.
Most of us get pissed off when we see a flyer for cheap oil changes on our windshield, so we can't imagine being too thrilled about someone slapping a magnet on our paint job. Call us crazy, but we probably wouldn't appreciate the adrenaline rush that comes with "Holy crap what happened to my ca... oh, it's just a magnet." Somehow we don't think that scaring the heck out of a car owner will entice him or her to drop $15k on a VW.
Besides, what message does this bone-headed marketing campaign really send for the Polo? Is it: "Polo: the steering is so bad, you'll have little control when you try to park." Or could it be: "Polo: the car everybody else will hate because it reminds them of the stupid magnet that got stuck on their car." We like the idea of a small, affordable, fuel-efficient VW, but we'd prefer people not touching our cars or sticking things to them, for that matter.
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