What's the point? I thought VW was trying to make the brand a bit more exclusive (how else do they justify the prices?) so why do they want to make a cheap, badly built, poorly specified Punto lookalike? Shouldn't it be given a Seat or Skoda badge?
As usual it's a financial decision based on the current market. I think VW need a small cheap car for Europe, especially for people from the emerging former eastern block countries who now have some money to spend and want to be seen in something other than a Skoda. I reckon they'll sell loads in Hungary, Poland, Czech Republic, Estonia etc etc. Also, I just looked up the base price of a Lupo (12,500 euros) and the base price of a Fox (8950 Euros). Big difference.
It's pretty hard to get much lower spec than the Fox. Manual windows and locking in 2005! If you want to offer a cheap car to developing markets with the prestige badge, don't also offer it in Britain, Germany and your other established markets so it cheapens the brand, durrrr!
You just wait for someone to build a 20VT.. Is it to compete with the likes of the seichento (sp) or summit like that then?
I'm not sure if I'd call VW a prestige badge and in any case they've been making cars in that sector/price bracket before. The Fox is what the Polo and Golf were years ago. They can't price up beyond the Phaeton (yet) so it makes sense to go down if there's a market for it.
Thing is markets like the USA/UK/western Europe are not where it's at for growth strategically. If you have a global company with global brands then it makes economic sense to sell in as many markets as possible and share as much of the cost as possible ie platforms. Other markets can be relatively cheap because they are not as sophisticated or demanding. China is such an example. VW have been selling 70s and 80s VW designs there for years and they are amongst the best sellers! Now SAIC have bought Rover they will be following the same principles
