Volkswagen has made it clear that they intend to build a future small car based on the New Small Family concept cars they've displayed this fall. Given that the up! is targeted a low $7,500 price point, manufacturing it in Germany would likely be a non-starter, especially given the strength of the Euro. With Volkswagen opening their first plant in India in 2009, they have aggressive growth plans in that market. By 2012 they could be building as many as 240,000 cars a year there with the production version of the up! making up a large share of those. In addition to the up! VW will also build the the next generation Polo at the plant in Chakan. Although building the micro-cars in India for the local market would seem logical, there is also the possibility that they will export the cars from there to the US market.

[Source: Inside Line]

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