(www.autoinsidernews.com) вЂ" Volkswagen's new CEO, Martin Winterkorn, continues to place his mark on the German automaker. Following reports that Winterkorn has ordered a redesign of the Passat Coupe, and other models, he said that VW is planning to design and develop a new ultra compact car that will slot in below the Fox.
Winterkorn is planning for an economical, everyday small car that looks attractive and is affordable. He added that, unlike DaimlerChrysler's Smart, it would have space for four people plus luggage.
Volkswagen is in the process of cutting up to 20,000 jobs, and introducing longer hours for those that remain, but Winterkorn has indicated that VW is not planning any additional cuts. Winterkorn said that further cuts would impact future VW projects, which he said includes a compact hybrid powertrain for the Polo and Golf. This goes against Winterkorn's previous statement that a $2,000+ hybrid premium is too much for VW in the competitive compact segment, reports Trend.