Volkswagen's plans to bring a car smaller than the Golf to the U.S. market have stalled as the German automaker considers allowing rival DaimlerChrysler [DCX] to import the car and sell it under the Dodge brand. VW dealers are naturally unhappy about the move, but there's a lot more at stake than meets the eye. Will Polo show up again? If not, why not?
The world of automotive marketing has changed drastically over the last generation. Gone are brands that are purely planted across national borders and localized brands. Instead, vehicles are sold that have one make but are actually made by a different manufacturer. Globalism is here and automakers have embraced these changes openly.
The Volkswagen Polo is a likely entry into the US market as a model that would fit nicely under VW's Golf in its US lineup. Many manufacturers are changing their car lines to make smaller cars the new entry-level vehicles in their fleet. Here are some examples of cars that have recently been introduced or will soon find their way into the car lineup:
Chevrolet: Korean automaker Daewoo, a subsidiary of GM, supplies the Aveo for Chevrolet. On the bottom rung, this car sits directly below the Cobalt.
Honda: After 35 years, the Civic will no longer be an entry-level model for Honda. An even smaller Jazz car will arrive in about a year.
Mercedes: Yes, even a luxury automaker like Mercedes is considering launching a line or two smaller than its current "baby" Mercedes line, the C-Class.
BMW: Ditto for another German luxury brand.
Dodge: With a replacement for the Neon Caliber coming soon, Dodge is still looking for a smaller Caliber for its fleet. With DCX's relationship with Mitsubishi frayed, the Japanese automaker can't be counted on to deliver a steady supply of entry-level cars for the Chrysler group.
Enter Volkswagen.
Yes, an unlikely supplier for the DCX is Volkswagen, a strong competitor for the Mercedes DCX division in Europe. However, VW has its own needs – the minivan – and The Chrysler Group will allow VW to launch a redesigned version of its minivan in the US. In exchange for the minivan, the Dodge Polo gets a small 1.2L powered four-seater that should get around 35 mpg city gas and just over 50 mpg highway.
The current Polo is sold in Europe as a three- or five-door hatchback, which is not a popular body style in the US. VW may instead deliver a specially reconfigured four-door sedan to ensure interest in the model in the US market.
Although VW seems to have committed to this particular arrangement with the DCX, the Polo could still be sold as a Volkswagen here as well. The Polo may continue to be available through VW dealers, retaining only the VW hatchback styling. Throw in the optional 1.9-liter turbodiesel and fuel economy climbs well above sixty miles per gallon. No wonder VW dealers are eager to see the car imported!
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