Blog: VW's 'Project 249' in Brazil
Dave Leggett | 15 April 2003
Whatever the cost considerations, the move will help to lift capacity utilisation in Brazil (still suffering from the depressed market in Argentina) and perhaps provide some output stability in a region prone to large swings.
Industry sources tell me that 249 will effectively replace the VW Lupo in Europe - a model that was hampered by the perception that its entry-level price point was too high for the utility it offered. Also the vehicle's small dimensions are said to have made it inappropriate to some developing markets which might be better suited to a slightly larger but lower spec model. Should be interesting to see how Project 249 is eventually executed and how the price will look in Europe.
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