VW developing new ultra compact car to take on Smart
 

The hits just keep on coming from Ferdinand Piech's new man, Martin Winterkorn. The new Volkswagen CEO has been shaking things up since he took over the reins in Wolfsburg, with 20,000 redundancies and longer working hours for the remaining employees.

Now, in an interview with German newspaper Sueddeutsche Zeitung, Winterkorn let loose that one his first product moves upon assuming the mantle was to start work on a new micro car slotted below the B-Class Fox. Since the Phaeton was a resounding failure in challenging Mercedes-Benz in the thin-air of the luxury class, it appears that they will instead challenge Stuttgart at the low end of the spectrum. There is no word on when the new model might be available.

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