VW Reshapes Mini-Car Strategy to Boost Sales

German auto maker Volkswagen has revealed plans that show a reshaping of the lower end of its product line to recoup lost sales. According to sources quoted in a report by Automotive News Europe, VW intends to bring forward by 12 months the introduction of an all-new Polo small car to 2007. The car manufacturer will also shift its strategy in the mini-car segment, selling the new Brazilian-built Fox, which replaces its slow-selling Lupo mini-car, as a two-door version only to reduce competition with the Polo. The Fox will be priced up to €2,000 ($2,400) less than the current €10,150 Lupo it replaces despite being over 30 centimeters longer. The strategic change is a response to demands from VW's works council and its dealers in Germany who want a budget-priced car to compete with Asian imports and the top sellers in the mini-car segment. VW sold just 43,188 Lupos in Western Europe last year.