With virtually every automaker rushing to bring a subcompact model to the U.S. market, you’d think Volkswagen—a company that built its reputation on small, robust cars—would be prepping its Polo and Up! models for sale here. A company executive has informed us, however, that VeeDub has no such plans. “The Golf and Jetta are as small as we’re going to go, for now,” he says. This is a bit of a change from the positive interest we heard from VW’s American CEO, Jonathan Browning, back in April.
Much of the explanation for the decision follows the typical argument: Small cars have thin profit margins, which makes them cost-prohibitive to import from Europe and still risky to build locally. Volkswagen is facing an additional challenge in expanding its U.S. operations from niche-size to major-player scale. This means upgrades to the supply chains and other logistical systems, as well as training for dealers and service techs. (Browning recently told Automotive News that the brand will need more dealers to meet demand in the next few years.) With the gargantuan task of becoming a gargantuan presence in the U.S., VW tells us that now is not the time for it to launch a low-volume, low-profit subcompact car that would sell in relatively small numbers.
This isn’t to say, of course, that Volkswagen will never sell a subcompact car—or even something smaller—here. We asked Volkswagen product planner Rainer Michel for additional comment on the topic, and he said that, if needed, VW “could bring the Polo here tomorrow.” The company is, of course, watching the market and the price of gas closely. For now, however, fans of that which is tiny—from the Polo to the Up! to the Bulli—will have to stick with offerings from other automakers.
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