Volkswagen Up! Production to Cost 900 Euros!

Volkswagen really knows how to deal with the crisis. While most automakers struggle to reduce output, cut workforce and shut down plants, Volkswagen is trying a different move. It will pay for the production of the upcoming Up! as much as 900 euro, with the car expected to be sold for around 9000 euros. This means a huge profit for the German brand which is going to build the car in its Indian facility, as report by autocar.co.uk.

Still, there are some unknown yet ambiguous facts on the Up!. First of all, the German manufacturer plans to build around 1.4 million units a year and it's yet unclear whether the Indian production facility is indeed capable of reaching such a big output.

On the other hand, previous reports on the subject revealed that Volkswagen will build the Up! in Slovakia at the facility that currently produces the Touareg and Audi Q7. The reason was fairly simple: the collapsing demand for the two models forced Volkswagen reduced output and make room for a new model. The Up! would fit in perfectly, representatives of the company said in April.

"Our team at Volkswagen in Slovakia is ideally prepared to provide the flexibility required for the production of the New Small Family. Four brands are already produced successfully under one roof at our plant in Bratislava today,” Professor Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said.

Nevertheless, we're still expecting for some official announcement coming from Volkswagen as the Peugeot 107, Toyota Aygo and Citroen C1 rival is expected to go on sale in early 2010.