The Volkswagen Scirocco, unveiled on Tuesday, will not be sold in the U.S. because of the dollar’s weakness when compared to the euro, VW said at the 78th annual Geneva International Auto Show.
VW brass said the car would be a good fit in the U.S. market, but at the current exchange rate, which hit a record low this week, the company wouldn’t make money on the venture.
“The exchange rate is the only reason for not selling it in the US,†said VW’s sales and marketing chief, Detlef Wittig.
Volswagen of America said earlier this year it did not want the Scirocco because it would cannibalize sales of the GTI and R32. But Volkswagen executives in Germany disagreed, and said they would make the final decision rather than VW of America. In the end, it looks like VW of America got its way, but not for the reasons it wanted.
Wittig said the weak currency underscores the need for a U.S.-based VW plant, and suggested the selection process for a suitable plant is underway. The final decision on a plant will be announced before July, but it’s confirmed that Canada will not host the company’s first North American plant.
“It’s an every-day car and it will be priced affordably to attract young customers,†Wittig said of the Scirocco.
With the Scirocco, VW hopes to bring back the same success it enjoyed with the original car, sold between 1974 and 1992. VW was the first manufacturer to offer such a “nostalgia†model with its New Beetle in the late ’90s. The Scirocco will be assembled alongside the VW Eos in Palmela, Portugal.
