A crummy economic climate is just what Volkswagen needs as it introduces the fifth generation of its Polo small-car. The newcomer sips fuel, has low emissions and carries a price tag that's reasonable, considering its specification level.
The company hopes it'll be a hot contender in the rapidly growing supermini segment of the market as financially strapped buyers shun large cars and their eight- and six-cylinder engines.
However, despite its good fuel economy and emissions-busting engineering, the 1.4 litre engine the car launches with may not be some buyers' first choice.
New Zealand will have to wait until the middle of next year for the 1.2 litre TSI "hero" motor that brings some advanced technology to the small-car market. Despite its smaller capacity, the engine produces more power and torque than the 1.4, yet uses less fuel and emits less CO2.
Its extra torque will add sparkle to the Polo's performance which, although adequate for many purposes, can be lethargic under acceleration - such as when overtaking - and does not complement the excellent handling that's partly due to a wider track and tweaked suspension. The handling can be made even better with an optional sports kit.
The car may need some added fizz to snare the younger buyers Volkswagen's hoping to attract. Right now, most Polo buyers are over 40, more than 60 per cent female and mainly professionals or retired. It wants to get more blokes behind the wheel and drop the average age to 30-plus.
It has to woo buyers from such key rivals as versions of Honda Jazz, Mazda2, Ford Fiesta, Toyota Yaris and Peugeot 207. These range in price from $25,845 to $30,500. Polo's launching for $27,990, but a fairly long options list means status-conscious buyers needn't be stuck with the stigma of a low price tag. Those who to tick all the options boxes in a snub to the harder economic times could easily end up paying an additional $11,000, especially if they choose the leather upholstery with sports seats for $4000.
Polo was first introduced in 1975 and has sold more than 10.6 million worldwide. The previous version has been on sale since 2001 - a long time for a car model and, quips Sheed, "we were starting to get sorry for the salesmen".
The Gen Five Polo looks rather like a shrunken Golf, although still retains lines that link it to the previous Polo.
Modest increases to length, width and height have added cabin space and more luggage capacity. It's 3970mm long on a 2470mm wheelbase. Despite its larger dimensions, Polo is 7.5 per cent lighter, with an unladen weight of just over 1100kg.
A variable load floor offers a low position for maximum cargo capacity and an upper position that gives a flat load floor with a lower out-of-sight storage compartment.
Polo's being launched with the 63kW 1390cc motor that produces 132Nm of torque and drives the front wheels through a seven-speed dual-clutch automatic transmission. This motor gets overall fuel economy of 5.7 litres per 100km, meets Euro 5 emission standards and sends into the air 135 grams of CO2 per kilometre.
Next year's 1.2 TSI produces 77kW and consumes 5.5 litres per 100km, emitting 129g/km of CO2 - half the equivalent model of the previous generation. A key to its good road performance is the 175Nm of torque that's available from 1500 to 3500rpm - figures usually associated with a diesel engine. The six-airbag car passed the new and more stringent Euro NCAP crash tests and received a top five-star score. Better structural rigidity of the body shell contributed to the results. For example, in the footwell area intrusion was lowered by half and, in a side-on crash, intrusion was cut by 20 per cent.
Polo has a standard Electronic Stabilisation Program package that includes hill hold control, ABS, a traction control system and an electronic diff lock.
Equipment includes climate air conditioning, electrically adjustable and heated exterior mirrors, a leather-covered steering wheel, electric windows front and rear, a stereo radio with a single CD player, 15-inch steel wheels and a full-size spare wheel. Alloys, up to 17-inches, are on the options list.
Thanks to the recession, Polo is in one of the fastest growth segments - one that's expected to grow 5 to 7 per cent in 2010 as the new-car market claws its way up to sales of a predicted 60,000. Volkswagen says passenger car forecasts are the lowest in a decade. Last year, 73,544 new vehicles were sold; this year the industry's looking at a possible 25 per cent drop to 56,000.
The 2010 clawback will be helped by corporate, rental, government and other fleet business that has delayed replacing vehicles this year, but won't be able to hold off another year.
Volkswagen says it's now "on the radar" of these buyers and has already been added to the shopping list of some. There have been significant sales to such organisations as Coca-Cola and food retailer Progressive Enterprises.
The company admits margins are tighter when dealing with the fleet sector but without it, sales would be down by 30 per cent or more. "You'd do it if it was your business," says Dean Sheed, Volkswagen's general manager for New Zealand. "You have to fish where the fish are."
Unleashing Polo's specs appeal
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