Report – VW to axe two-door Polo due to cost cuts image

According to recent hints from insiders, the largest European automaker and second-biggest in the world, Volkswagen AG, might opt to cease manufacturing the two-door variant of the namesake’s brand Polo hatchback.

The subcompact model is one of the best-selling nameplates for the company but the two-door version might see the axe because of the ongoing acceleration of cost cutting strategy at the German brand – which has seen profit margins dwindling in recent years. The company sources, which opted to remain anonymous because the news is not public yet, said the core VW brand will introduce the next generation of the Polo hatchback sometimes in 2017, with the two-door variant being left out as demand for the variant has been sliding recently. Naturally, the two persons familiar with the company’s strategy added the Polo four-door would live on when the overhaul is announced.

The Polo is VW’s subcompact offering for the past four decades and secured the fourth best-selling vehicle position on the European continent in 2014, after the larger VW Golf, Ford Fiesta and Renault Clio – according to figures from industry forecaster JATO Dynamics. Wolfsburg-based VW has been focusing on lowering the parts number and stopping unprofitable nameplates – such as the Eos cabrio – in order to boost savings at the core VW brand. The largest unit by sales and deliveries has been tasked to lift the cost cutting strategy to 5 billion euros ($5.5 billion) annually by 2017.

Via Reuters