Volkswagen to kill the Beetle?

Cutting costs is the name of the game at Volkswagen at the moment and sources say the boom-then-bust Beetle is at the top of the list to be axed.

However, it’s not just the Beetle. All of the two- and three-door Volkswagens are said to be under the microscope, with sources suggesting killing off the three-door Polo would save the Group a billion euros.

But the Beetle is said to be the most obvious ‘dead-man walking’, with its sales crumbling from its initial highs. While the New Beetle of 1997 brought a buzz to Volkswagen, the second-generation of 2012 has been a relatively lackluster sales performer. Even its modest 94,214 global sales last year were down 22 per cent from 2013.

Other badges on the chopping block include the Scirocco and the Eos, the scarcely-seen folding hardtop convertible.

While Volkswagen has made great strides in sales as it targets the global number-one position, its profitability per car is around a third of what Toyota boasts and the Germans are looking to cut costs.

Sources at Volkswagen suggest the market for three-door hatches has waned in Europe and that the entry-level Polo body style is unlikely to be replaced, though no decision has been made on the Up!.

In fact, had it not been for the demands for the R and the GTI, the current generation Golf VII would not have had a three-door body option. Less than five per cent of Golf volumes are three-door hatches, though that jumps to 14 per cent for the GTI.