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VW is set to make a huge profit on every model it sells of its upcoming city car, the Up!, according to Autocar sources.

The Up!, a car being pitched against the Peugeot 107, Citroen C1 and Toyota Aygo, will be built for around 900 euro (£775) at its low-cost Indian assembly plant.

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With VW planning to sell the Up! for around 9000 Euro (£7700), the firm will be making a substantia...Read the full article

Wow, this is staggering!  I would have thought that material costs alone would be more than the mentioned figure.

How much is the Nano??

Autocar:

VW is set to make a huge profit on every model it sells of its upcoming city car, the Up!, according to Autocar sources

 

Not if it generally becomes known how much we are going to be ripped off by VW.  If the cost of the Up! really will be that low, I'm damned if I would ever fork out £7.7k just to fill VW's coffers, no matter how good the car may be.

streaky:

Not if it generally becomes known how much we are going to be ripped off by VW.  If the cost of the Up! really will be that low, I'm damned if I would ever fork out £7.7k just to fill VW's coffers, no matter how good the car may be.

The figure shown is just a head line figure and doesn't say if this is just "production cost" or cost to produce a car.  Don't forget there are other cost involved in producing this vehicle, like design, testing and after production shipping.  You will probably also find that the extras will be added on when they reach the target market, in much the same way Hyundai do with their vehicles.

The head line is a bit "Auto Express", and when all is said and done, it will probably cost VW around £3000 - £3500 per car to produce.  Don't get me wrong, it's still a good profit for VW but they have to make back the money they loose on the Veyron somewhere!

Don't think the article is true, just seems very unrealistic and unlikely. If the car is produced for so little it will be crap.

yeah, media sensationalism strikes again! 900 Euro in labour costs sounds reasonable. There's the shipping which will also be about 1,000 Euro plus materials. Then don't forget Import duty. I'd be surprised if this car would cost less than 5,000 sat at a dealer.

I agree, this figure is meaningless unless we know what part of production this means. It certainly won't be the full cost of producing the car, as implied, let alone supplying it. They have to pay back the R&D, the cost of building the factory, parts, labour, energy, shipping, import taxes, the costs of running the dealer, comission to the dealer, advertising, customer services and warranty costs.

the fact that the raw materials and labour might come to less than 800 doesn't by any stretch mean they will make a profit on every car. Although if they keep the other costs in line then they probably will.

This article has as much credibility as the recent chestnut "Dodge Cars To Be Alfas in Europe". With this level of 'journalism', we're all going to be buying Auto Express for the quality of it's articles...

Maybe the idea is that VW has been scooping up all the old Polo's throughout Europe in the Scrappage schemes and will just rehash them out as UP!'s

Gosh - Volkswagon in "SELLING VASTLY OVER-PRICED CAR" shock!!!

Not.

zoomzoom:

Gosh - Volkswagon in "SELLING VASTLY OVER-PRICED CAR" shock!!!

Not.

Yes, but they usually badged AUDI.

If this is true, then expect to see lots of manufacturers relocating east!