BRAUNSCHWEIG, Germany (AP) -- Volkswagen is planning a cheaper model of its new Beetle for Germany, which has shown scant interest in the car compared to its huge success in the United States, a newspaper said Tuesday.
"We let ourselves be led by the enthusiasm in America. That was a mistake. The U.S. situation cannot be applied to Germany," VW Chairman Ferdinand Piech was quoted as saying in the daily Braunschweiger Zeitung.The new model would have a less-powerful engine and cost under 30,000 marks, or $16,430, the report said That would be about 5,000 marks, or $3,000, less than the current model.
VW did not immediately return calls seeking confirmation.
The new Beetle, made in Mexico, was a hit in the United States, where nostalgia is strong for the earlier, 1960s version. About 40,000 Beetles were sold in the car's first six months on the U.S. market last year, with a basic price of $15,200.
The car drew a lot of attention when it debuted in Germany in November, but sales have been lagging, apparently because of the price.