Volkswagen is offering its German dealers an extra €1,000 bonus for every Fox they sell, even though the Brazilian built Lupo replacement is already selling at a loss.
The Fox was intended to provide VW with a cheaply-produced model for the lower end of the market, but a 35 percent strenghtening of the Brazilian currency, the real, against the euro in the last 18 months has made the model uncompetitive as an export.
In addition, the target of 100,000 units of the Fox to be sold in Europe this year is unlikely to be achieved, going on sales so far.
Brian Byrne.
