Volkswagen is downsizing the number of parts and unprofitable models to save cost to the amount of 5 billion Euros ($5.5 billion or Rs. 33,981 crores) per year by 2017. In the process, low selling models like Eos convertible and Polo three door are likely to be axed.
Volkswagen Polo is a brand that has been in existence for four decades. It was the Europe’s fourth best selling car in 2014, trailing Volkswagen Golf, Ford Fiesta (hatchback) and Renault Clio.
To increase profitability and enhance adaptability of upcoming models in different manufacturing facilities, VW is transforming its models to be underpinned by MQB modular platform. Volkswagen Polo, currently based on PQ25 platform, received a mid-life facelift in mid-2014. The next generation Polo will come out in 2017, most likely based on MQB architecture, sans a 3-door option. Discontinuing Polo three door variant would save the company 200 million Euros (Rs. 1,361 crores).
Apart from this, Volkswagen Beetle retro-classic hatchback is likely to be torn off the product portfolio, soon. Last comprehensive update was done in 2011. It is believed that cost cutting can potentially exceed the target of 5 billion Euros.
Via – Reuters