Volkswagen AG’s new chief executive said the automaker plans a new compact model and does not foresee impending job cuts.
DaimlerChrysler AG’s Smart is a compact car that boasts a bunch of advantages like easy to park built that allows “nose-in” parking. Smart Fortwo idea was supported by Swatch, a Swiss watch manufacturer hence the code “Swatchmobile.” Later, the name was altered to SMART, short for Swatch Mercedes ART. The function of the car is to transport two people and few luggages.
The production of the final Smart car for sale was costly; the primary cause is the engine technology used aside from the distinct cold air intake. As a fact, it was more expensive than other four and five seater cars sold in Europe. This is the very reason why the joint venture experienced heavy losses. Eventually, Swatch pulled out from the business venture.
Volkswagen, a German Wolfsburg-based automaker, is in the process of enforcing its own restructuring plan that includes the cutting of up to 20,000 jobs, trimming production expenses and implementing extended working hours at its German plants. The restructure program was introduced by Bernd Pischetsrieder, previous CEO of the company. The said introduction was made in a bid to compete with Asian automakers which have been making steady success in the global market. This automaker resorted to this strategy in an effort to have a bigger piece of the American auto market.
Volkswagen, one of the biggest automakers around the world, has popular brands like Audi cars, Bentley cars, Skoda cars, Lamborghini cars, SEAT and the brand Volkswagen itself, which was founded in 1937. Volkswagen compact cars use the A platform, which was originally based on Golf’s architecture and is adjustable to either front- or all wheel drive configurations.
Tags: audi, bentley, smart car, volkswagen