A new supermini called the Fox will become the Volkswagen UK price leader when it takes over from the Lupo early next year.
But the Brazilian-built three-door car will be bigger, have a larger interior and come with a sliding rear seat arrangement similar to that just launched on the Golf Plus to provide greater versatility as a load carrier.
Featuring sporty looks and front styling similar to the Golf, the new model will have a choice of petrol and diesel engines sized at 1.2 and 1.4 litres.
A Volkswagen spokesman said: ‘Although it is still a long way from the showrooms, it has been decided to market this car as a high-value model. That means we will be aiming to price it from around £6,500 so it can compete with cars like the Fiat Panda.
‘This will be a change from the marketing approach we took with the Lupo, which costs from £7,880 and was intended to offer Golf-type quality in a city car package.’
Introduced in five-door form in 2003, the Fox is Brazil’s sixth best-selling car and leads its segment. Extra production facilities are now being installed at the factory in Sao Paolo.