Filed under: Manufacturing/Plants, MPG, Volkswagen
Volkswagen up! to be more expensive than first thought
Click the up! for a high-res gallery
Volkswagen's new super-mini which was previewed as the up! concept at the Frankfurt Motor Show last month may end up costing quite a bit more to buy than originally thought. While VW had been targeting an 8,000 Euro price point it now looks like the opening bid will be 8,950 Euro with the four-door version coming in 500 Euro higher. Keeping manufacturing costs to an absolute minimum has been the top priority for VW engineers and that entails using standard off-the-shelf components as much as possible rather than items specifically developed for the car.
VW is looking at their Czech division Skoda as a production source. One other cost saving measure that is being considered is a nine year product life-cycle rather than the usual seven years that VW's stay in production. The volume targets for this car are substantially higher than the smaller Smart ForTwo. VW is planning on 100,000 units annually under their own brand in Europe with another 200,000 under the Seat and Skoda brands. Emerging market sales are expected to bring the total to over 460,000 per year. With those kinds of volumes, it critical that the cost be kept low to make this low-priced machine profitable.
Gallery: Volkswagen up! concept
[Source: Just-Auto - Sub. req'd]
Reader Comments (Page 1 of 1)
BlackbirdHighway 4:23PM (10/08/2007)
Seems a bit girly to me. (OMG, does it come in pink!)
Then again, there are a lot of women buying cars, so maybe it will do well.
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Lee D. 11:12AM (10/09/2007)
I don't care.... "girly car" or not, if it gets the phenominal mileage that they are talking about that is better than current hybrids while being far cheaper to boot, I'm sure that I would be secure enough to drive one!
VW - PLEASE BRING THIS TO THE U.S. ! ! !
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rgseidl 12:55PM (10/09/2007)
I'd take any estimates of end user prices with a grain of salt at this point. Not having a subscription, I'm not sure how Just-Auto got its number. If it came directly from VW, it could be a leaked preliminary number or else, a (clumsy) trial balloon to see what the market will bear. It's not unusual for R&D and manufacturing to push back on cost targets dictated by marketing considerations in the early stages of product development, though the specifics usually remain strictly internal.
Still, we're at least 3 years away from the actual start of production for VW's New Small Family, there's ample time for reducing cost to meet the original price point target. Admittedly, 12% is a tall order, but not necessarily impossible.
@ Blackbird Highway -
(a) you're quite the male chauvinist. If pink were really a popular color among women motorists, don't you think it would be a common sight on the road by now? Plus, men who think their car must be big lest it make them look girly are usually compensating for something.
(b) the Up! was a concept car, the production sheetmetal will almost certainly look a little different. That goes doubly for the Seat and Skoda rebadge versions.
@ Lee D -
VW probably won't bring this to US shores as long as it's manufactured in Europe (strong currencies) and features a diesel engine. The exhaust gas aftertreatment required to meet EPA T2B5/CARB LEV II would jack up the price too much for such a small car. Production of a gasoline variant in Mexico might make sense, but it wouldn't have the same fuel economy and perhaps, a lower build quality as well.
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