VW to launch new Golf

Volkswagen Australia has confirmed it will draft in a new player to sit at the bottom of its Golf line-up and significantly undercut the current entry level model that starts off at $24,990.  Neither of these prices include on-road costs.

The new bargain model, called the 77 TSI, will run a 1.2-litre four-cylinder turbo petrol engine producing 77kW and 175Nm of torque.  It slips in $3000 below the 90 TSI petrol turbo model and has much of the same equipment but misses out on cruise control, a multi-function steering wheel and also runs steel rims instead of alloy wheels.

The new model might be cheaper but it will still have crucial safety gear including seven airbags and electronic stability control.  It runs a five-speed manual as the standard transmission, while a seven speed dual-clutch automatic is a $2500 option.  The 77 TSI is already sold in several European markets and is also popular in England, where small economical engines are the top sellers.

VW has already introduced the 77 TSI engine with the Polo baby car and says it has received good feedback.  Volkswagen Australia managing director Anne Koeckler says the new entry level model will extend the appeal of the new model.

"It allows us to target new customers who wanted to have a Golf but couldn't afford it," she says.  The Golf is the first volume pillar and to make sure it is the volume pillar into the future into the future we started the shift to get it in the sweet spot."

The most popular Golf in the range is the 103 TDI turbo diesel model and Ms Koeckler that is not likely to change for some time. However she would not provide any estimation of the sales the new 77 TSI model could achieve.

The new entry level Golf is a key part of VW Australia's plans to dramatically boost its sales in line with Volkswagen's plan to be the top selling brand in the world by 2018.  "We will not discuss our internal target," Ms Koeckler says.

"You can assume we have the opportunity to double our volumes from where we are right now and go further. With all the new products that are coming next year we have a lot of opportunity."

So far, VW Australia is planning on launching the Amaraok one-tonne ute, the next generation Passat and the new Touareg next year.  It will also introduce the super efficient Bluemotion Golf model and roll out fuel saving Bluemotion technology on some other models.