The all-new Volkswagen Golf will be revealed next month ahead of its launch in 2017. But when it's launched it will not be available in as many variants as the current model.
This was stated by VW boss Herbert Diess. The German carmaker's profit margins are at all-time low. So to improve profit margins Volkswagen will be negotiating labour and supplier deals and also will be reducing the complexity of its model lineups.
Diess said, "We need to simplify the product offering of the next Golf and have fewer variants, because we have got to get more cost-effectiveness into our company. We need to be more agile and more innovative, and this is one example."
The current-gen Golf is offered in the hatch, estate, convertible, Alltrack and SV variants. Although Diess did not specify which variant will be cut-off from the lineup.
As per the sources, it is said that Diess has also pushed the engineers and managers to reduce the cost of the new MQB platform on which the new Golf hatchback will be based on.
The growing pressure to push the profit margins is also because of VW's latest investment in the electric car strategy. Which will be based on the newly developed MEB platform.
Volkswagen is also looking to launch more SUV's in the market which has a high profit margin and appeal to wider customers across the globe than other segments.
The range of SUV's will include Polo based model, Golf-based SUV which will slot below Tiguan and a large seven-seater SUV targeted at the US and Asian markets.