VW May Sell Polo in the U.S.

By Brendan Moore

01.17.2008


Volkswagen may sell the sub-compact Polo, its model below the Golf in size and price, in the United States next year, according to an article in Handelsblatt, a German business daily. VW said it may also sell the microbus concept “Space Up!” in the U.S.

“I will meet with our 600 dealers in the USA this week and ask them ‘do you need the VW Polo’,” Chief Executive Martin Winterkorn told Handelsblatt in an article published on Tuesday.

Every auto manufacturer is now looking at the American market with fresh eyes as it has become apparent that there is now demand for smaller cars. Almost every foreign car company has one or two models that it has sold in their respective home market for years, but never considered selling in the U.S. because of Americans’ penchant for big iron. But as gasoline prices rise, many Americans are now considering driving something smaller.

Volkswagen AG is to move the production of its Polo car from Brussels to Setubal, Portugal in conjunction with the introduction of the new Polo model in mid-2009 for cost reasons, but even if the Polo were produced in Portugal, it would still be a money-loser for VW at current exchange rates. If the dollar continues to lose value against the euro, the only way for VW to make a profit on the Polo would be to produce the car in the U.S.

VW is currently considering production facilities in the southern region of the United States. The U.S. production plant is expected to produce at least two models and quite possibly could accommodate production of three models.

VW Space Up! Concept

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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3 Comments

  1. The Polo would sell in the U.S. and do it in good enough numbers to make it a good contributor to VW’s numbers here.

    Diesel Polo would be great here in America.

  2. Diesel and supercharged models of the Polo would be great. Bring them over!

  3. It’s about time…

    Maybe that will be the incentive Ford needs to produce the Fiesta here in the States.

    Looking forward to some well equipped, good performing, sub-compact cars. Hooray for CAFE!

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