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VW reengineers its model line back to "People's Car" basics
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I think that line there is the key to VW survival. Nobody wants or can affort a Phaeton, and the Toureg is expensive for it's class. They need to tighten up the current models. Bring us the Polo. Emphesis what they have that no one else does, the TDi, and concentrate on being "peoples car" again.
As for the Beetle. The Beetle is VW. People go on a VW lot expect to see Beetles. There needs to always be a Beetle.