Why are affordable new cars vanishing? Volkswagen eliminates its smallest and least costly model

Volkswagen has officially ended the production of its smallest and most affordable new car, the VW Up. This move is part of a larger trend in the auto industry, as car manufacturers consolidate their model line-ups in preparation for the shift to electric vehicles (EVs). The discontinuation of the Up comes after Ford stopped production of its popular Fiesta supermini and Volvo decided to only sell SUVs in the UK.

The removal of these cheaper models, coupled with post-pandemic vehicle supply issues and inflation, will make it increasingly difficult for drivers to find small, affordable vehicles as we approach the 2035 deadline for the transition to EVs.

According to Autocar, production of the Up at VW’s Bratislava factory in Slovakia has already ceased. The Polo now serves as Volkswagen’s smallest and most affordable new model, but there are concerns that even it may be at risk of disappearing. Volkswagen’s CEO, Thomas Schäfer, hinted that the Polo could be removed from the line-up in the future due to emissions regulations and increasing production costs.

The Up was initially introduced in the UK in 2011 with a starting price of around £8,500. It was available as a three or five-door option and featured frugal 1.0-litre petrol engines. Over the years, the price has increased to over £15,000 due to the removal of three-door versions, lower trim levels, and the addition of more powerful engines.

The Up shared a platform and powertrains with the Seat Mii and Skoda Citigo, both of which have already been out of production for several years. The electric version of the Up, known as the e-Up, was discontinued last year. The Up GTI, considered one of the best small performance cars, is also no longer being manufactured.

Volkswagen has confirmed that the Polo will eventually be replaced by its ID.2 EV in 2026, with a promised cost of no more than €25,000 (£22,000). The German company has also teased an electric successor to the Up, likely to be called ID.1, which will be priced below €20,000 (around £17,000).

This shift in the industry is reflected in the top 10 best-selling car brands in 2023. Volkswagen takes the top spot with 123,333 registrations, followed by Ford with 111,775 registrations. The cheapest new VW model currently available is the Polo, starting from £20,730, while Ford’s cheapest model is the Puma crossover, priced from £25,640. Audi, with 104,068 registrations, offers the A1 Sportback as its most affordable model, starting from £22,710.

As car manufacturers reduce their model line-ups, it’s clear that the landscape of the automotive industry is changing rapidly in preparation for the transition to EVs.

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