Development work on the £5400 model could be finished this year, with production starting in late 2015
Development work on Volkswagen’s proposed £5400 super-budget car is well underway, according to Ulrich Hackenberg VW’s technical chief. It will significantly undercut both the new Up city car, which has been designed for more affluent Western European drivers, and the new Chinese-market Jetta saloon, which retails from £7500.
Speaking before the opening of the Detroit motor show, Hackenberg told Autocar that his engineering teams were still working on hitting the cost targets for the new car. ‘It’s a tough job, but not impossible, and we’ve got the experience to do it. We’re still working to get to the targets.’Hackenberg revealed that ‘if the design is finalised this year, we can launch the car in two years’. He confirmed that the car - which will eventually come in different body styles depending on the local market - would have a new brand name.
In order to drive costs as low as possible, Hackenberg told Autocar that not only would the car have to be built and partly-engineered in a low-cost country, but the materials would have to be sourced locally, and even the ‘second and third tier’ components would have to be localised.
At the moment, VW bosses are concentrating on the creating the first version of the ultra-budget car for China, where it would also be built. A second version of the car would probably be engineered for India where it would also be locally produced. No details were forthcoming about the platform being used for the car, but it might exploit existing VW technology, such as some elements of the new Chinese-market Jetta, which uses the front structure of the current Polo.
Hackenberg cautioned that the car might have premium technology, but would be ‘good quality’. ‘This car is not just about fulfilling the need for mobility. It has to have good styling and the owner should be able to upgrade the specification over time. The owner wants to be proud of the car.’
Local considerations for China could include a wider range of colours and some bright trim work to enhance the appearance. ‘It doesn’t want to look too cheap’ Hackenberg told Autocar. VW is also working on a cost-effective way to allow smartphone integration into the car, despite the model’s simplicity.
The new budget range is expected to be signed off later this year, with the first production cars appearing in late 2015. In the medium term, it looks unlikely that car would be sold in Western Europe and, if it was, it would not be exported from China.