VW up!: Production costs only 900 Euro?

Saturday, July 04, 2009

VW up!: Production costs only 900 Euro?

WorldCarFans is claiming that the production of the VW up! will only cost about 900 Euros. We have our doubts.

A report in Autocar claims the diminutive car will be manufactured in India at a cost of roughly €900. The company will then turn around and sell the cars for roughly €9,000.

Of course, this does not factor in the additional costs of either import & export taxes, nor does it include shipping & transportation fees. These costs will certainly cut into VW's profit margin on the car. However, the company could just as easily add a "destination charge" on top of the sticker price to maximize their profits.