| Volkswagen AG's new chief executive said the | | | | that produces Forfour supermini. The automaker |
| automaker plans a new compact model and does | | | | ceased development on the Formore and |
| not foresee impending job cuts. Martin | | | | discontinued Roadster. Last year, after |
| Winterkorn, former head of Audi division, became | | | | experiencing slow sales, the company announced |
| Volkswagen's CEO this year, and has since taken | | | | the cancellation of Forfour and the redesign of |
| over the company's core VW brand. | | | | Fortwo, set to be unveiled in Europe this year. |
| According to Winterkorn, shortly after taking | | | | Volkswagen, a German Wolfsburg-based |
| office, he proposed the "design and development | | | | automaker, is in the process of enforcing its own |
| of a new, very small, model below the Fox." | | | | restructuring plan that includes the cutting of up |
| Winterkorn described the compact as "an | | | | to 20,000 jobs, trimming production expenses and |
| economical, everyday small car that looks | | | | implementing extended working hours at its |
| attractive and is affordable." The said new | | | | German plants. The restructure program was |
| compact will be engineered to cater to a diverse | | | | introduced by Bernd Pischetsrieder, previous CEO |
| market around the globe. Winterkorn added that | | | | of the company. The said introduction was made |
| unlike DaimlerChrysler AG's ultracompact Smart, it | | | | in a bid to compete with Asian automakers which |
| would have "space for four people plus luggage." | | | | have been making steady success in the global |
| DaimlerChrysler AG's Smart is a compact car | | | | market. This automaker resorted to this strategy |
| that boasts a bunch of advantages like easy to | | | | in an effort to have a bigger piece of the |
| park built that allows "nose-in" parking. Smart | | | | American auto market. |
| Fortwo idea was supported by Swatch, a Swiss | | | | According to the Sueddeutsche Zeitung, a |
| watch manufacturer hence the code | | | | German newspaper, Winterkorn indicated that the |
| "Swatchmobile." Later, the name was altered to | | | | company did not plan further cuts beyond that. |
| SMART, short for Swatch Mercedes ART. The | | | | "We need the team in its current strength in |
| function of the car is to transport two people and | | | | order to realize additional projects that we are |
| few luggages. | | | | getting started now," Winterkorn said. Among |
| The production of the final Smart car was costly; | | | | those projects, "there will definitely be a hybrid |
| the primary cause is the engine technology used | | | | propulsion for cars in the compact class such as |
| aside from the distinct cold air intake. As a fact, it | | | | the Polo and Golf -- as quickly as possible," he |
| was more expensive than other four and five | | | | added. Winterkorn, chief of VW AG, confirmed |
| seater cars sold in Europe. This is the very reason | | | | that the extra production of the new compact |
| why the joint venture experienced heavy losses. | | | | model could avoid further job cuts. |
| Eventually, Swatch pulled out from the business | | | | Volkswagen, one of the biggest automakers |
| venture. | | | | around the world, has popular brands like Audi, |
| In 2005, DaimlerChrysler decided against | | | | Bentley, Skoda, Lamborghini, SEAT and the brand |
| purchasing a 50 percent share in the NedCar plant | | | | Volkswagen itself, which was founded in 1937. |