Skoda and Seat worried about the costs to build the upcoming Vw Up

Article by Christian A., on August 25, 2010

The brand engineers of VW want to fit components in the Up that would make it too costly for Skoda and Seat to vend. An insider at VW, who did not want to be named, said that the choices of VW are almost always too pricey for Seat and Skoda. At least half a million variants of Up is planned for global sales by VW group according the Martin Winterkorn, VW CEO. Initially showcased at the 2007 IAA in Frankfurt, the Up concept will form a new minicar range dubbed the New Small Family.

Although Skoda and Seat will be contributing high volumes to the production of the Up, VW does not involve them when it comes to deciding the components that goes into the car.

VW spokesperson would not comment concerning the disagreements among Up engineers, only referring to them as positive process intended to improve products.

Furthermore, he stated that VW is taking advantage of every opportunity just to cut on costs as it develops the Up. Components of the Up, such as axles, transmissions or powerplants, will stay the same for all brands that offer the production version.

The Seat and Skoda variants will come with a different exterior design and interior finish. The price of Skoda for its cars is about 1,000 Euros to 1,500 Euros lower than the same model by Volkswagen; while Seat's pricing is generally just below that of VW.

The head of creative design for VW has revealed that there is design freeze for the VW Up. The same design freeze for the Skoda and Seat variant will occur in the next two to three months down the road. The VW Up production model will be available for sale by the end of next year.

Volkswagen didn't only introduce a new car worth cruising when it launched up!, as it also reinvented the criteria of maintenance, financing, and auto insurance. Individual German modules are now being joined into a fresh package deserving the title of an up!grade. The limited, exclusive financing for the up! is shouldered by AutoCredit2, in which clients are allowed to divide the timeframe of the contract into two with varying installment rates. Because of this, AutoCredit2 gives a more flexible approach in buying cars.

Another catch is the offer of FairPay insurance that gives the customers a hefty amount of savings - sometimes even up to 1,700 euros every year depending on the conditions of the lease contract or financing. The coverage of FairPay insurance includes a total vehicle liability and a complete comprehensive insurance feature for buyers who are 23 years old and above (at a minimum no claims class "SF1") -- all for a standard price of 19.90 euros every month.

Customers who seal the deal by December 1, 2011 are also eligible for a FairPay insurance of 9.90 euros every month. For even younger customers, the comprehensive insurance from FairPay is up for grabs for 49.90 euros every month - or at an even smaller amount of 39.90 euros every month if contract signing is done by December 1, 2011.

The final part of the up!grade includes maintenance and usual servicing costs for the car at an affordable monthly price (in Germany, from 11.90 euros every month for a contract of 48 months and 10,000 km/yr). There has never been a deal quite like it – a feat that only Volkswagen has offered to date.

up! exterior

With a length of 3.54 m and a width of 1.64 m (excluding mirrors on the door), the up! is one of the tiniest of cars holding four seats. Its height is 1.48 m. The overall length of the up! is comprised of short body overhands and a wheelbase that is longer than expected (at 2.42 m). The design of the up! makes use of every space necessary to fulfill the needs of its driver and passengers.

Topics: vw, vw up, skoda, seat

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