
Prices Gone Mad: VW Wants $32,000 for a Hatchback With 94 HP
The Polo Edition 50 starts at €28,200, equivalent to approximately $32,500 at current exchange rates. Sure, it's a generously equipped version with heated front seats and whatnot. However, it's still not a fully loaded configuration.
VW
charges extra for niceties such as two-zone automatic climate control, keyless functionality, and the panoramic sunroof. More importantly, it's far from being a GTI in terms of power.
Photo by: Volkswagen
In its most basic form, the special edition makes do with a turbocharged 1.0-liter engine hooked up to a five-speed manual transmission. The three-pot produces just 94 horsepower, but you can upgrade to more potent versions of the 1.0 TSI with up to 114 hp. The slightly more powerful versions can be ordered with a seven-speed dual-clutch automatic transmission. Opting for the DSG increases pricing further.
The Edition 50 may cost about as much as a Golf GTI in the United States, but it's not even the most expensive Polo available in Germany. The GTI kicks off at €35,450 (nearly $41,000). Step up to its bigger brother, and VW will charge you €45,710 (almost $53,000) for a
Golf GTI
. Pricing for the Golf R begins at €55,000 ($63,400), and there's also an R Black Edition for a staggering €59,645 ($69,000).
We're not done yet. In the Polo and Golf world, the most expensive model was a German market-only
Golf R 333, priced at a whopping €76,410
($88,000). It was even more expensive than an Audi RS3, but nonetheless, VW sold all 333 cars in just eight minutes. Imagine how successful a five-cylinder Golf R would be with the 2.5 TFSI engine. Rumor has it
Audi refused to lend its inline-five
a few years back.
Volkswagen Polo Edition 50
7
Source: Volkswagen
But these crazy prices are not an isolated case. Cars sold in Europe are generally more expensive compared to the US. The discrepancy largely stems from the value-added tax. VAT is 19% in Germany, but it can be as high as 27% in Hungary. The EU's average standard VAT rate is 21.8%.
Aside from VAT, extra local taxes based on emissions result in ridiculous prices for some performance cars. That's why a
Honda Civic Type R is over $100,000
in the Netherlands, while a Toyota GR Yaris is also a
six-figure car in France
.
Europeans may have a greater variety of options than Americans when it comes to choosing their next car, but they're paying dearly.
The Baby Golf:
Volkswagen Has Made A Car For Farmers, And No, It's Not A Truck
VW Polo GTI Edition 25 Marks A Quarter Of A Century Of Hot Superminis
Get the best news, reviews, columns, and more delivered straight to your inbox, daily.
back
Sign up
For more information, read our
Privacy Policy
and
Terms of Use
.
Source:
Volkswagen
Share this Story
X
Got a tip for us? Email:
tips@motor1.com
Join the conversation
(
)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Wall Street Journal
an hour ago
- Wall Street Journal
U.S. Allies Still Waiting for Tariff Relief on Autos and Steel
TOKYO—In return for billions of dollars of investment pledges and promises to buy more American goods, U.S. allies in Asia and Europe say President Trump agreed to lower tariffs on key exports such as cars and steel. Weeks later, they are still waiting.
Yahoo
2 hours ago
- Yahoo
Ramsey Theory Group Revolutionizes the Automotive Retail Sector with a Secure and Digital-First Sales Platform Proven to Streamline the Sales Process
Ramsey Theory Group is improving the automotive sales experience in a tougher market by giving car dealerships a secure, fully digital AI-driven platform to streamline transactions, ensure compliance, and deliver the convenience that car buyers demand. NEW YORK, Aug. 19, 2025 /PRNewswire/ -- Ramsey Theory Group, a leading provider of software development, quantitative analysis, information technology, cybersecurity, digital marketing, and product development, announced today that its AI-driven platform for the automotive retail sector is showing strong benefits for dealerships and customers alike. The seamless, compliant, and secure digital solution now is being used by car dealerships nationwide and delivers the following: Simplified, End-to-End Sales Workflow - streamlines the dealership sales process by enabling document uploads, credit submissions, and creation of compliant deal documents - all within a digital, AI-driven ecosystem designed for efficiency and clarity. This approach reduces paperwork, administrative burdens, and errors, significantly cutting time and costs for automotive retailers. Enhanced Compliance and Security - Built with regulatory and fraud-resistant measures in mind, the platform uses AI to ensure that all customer information and deal documentation adhere to compliance standards. This mitigates risk for dealerships and instills confidence in buyers throughout the transaction process. Improved Customer Engagement and Convenience - the app reimagines car buying as a fully virtual, user-friendly experience. Customers can remotely upload identification documents, submit credit application info, and receive compliant deal documentation from the comfort of their own homes. This consumer-centric approach caters to modern buyers' expectations for convenience and transparency. Thoughtfully Designed for Automotive Retailers – the solution was developed following extensive research and conversations with dealership staff and customers. Addressing real-world pain points, the platform delivers a user experience that saves time and enhances satisfaction for both parties in the automotive sales process. "Unlike other solutions for the automotive retail sector, we spent a great deal of time researching and evaluating the pain points of both the car buyers and also the dealerships," said Dan Herbatschek, CEO & Founder of Ramsey Theory Group. "This leapfrog technology brings speed, security, and simplicity to the automotive sales process and we're excited to continue innovating with new feature rollouts for the platform in the near future based on our customers' feedback." Visit to learn more. About Ramsey Theory GroupFounded by entrepreneur and technology innovator, Dan Herbatschek, Ramsey Theory Group leverages its expertise in software development, quantitative analysis, information technology, cybersecurity, digital marketing, and product development to better help organizations optimize their workflow. Working alongside entrepreneurs, the firm bridges the gap between business and software engineering matters - translating the vision of organizations into technologically executable problems. Based in New York, the Ramsey Theory Group specializes in Data-Intensive Application Design, Data Engineering, Business Intelligence, Custom Optimization, Mathematical & Statistical Modelling, Software Development, Data Visualization, Blockchain Development, Blockchain Consultancy, and Web and Mobile Application Development. View original content to download multimedia: SOURCE Ramsey Theory Group Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
Xiaomi Plans Europe Foray in 2027 After EV Sales Gains Pace
(Bloomberg) -- Xiaomi Corp. intends to sell its first electric vehicle in Europe by 2027, declaring plans to take on Tesla Inc. and BYD Co. globally after gaining traction with its year-old Chinese EV business. President Lu Weibing shed more light on the company's expansion plans after reporting a 31% rise in quarterly revenue, riding the successful launch of its second EV over the summer. That helped counter slowing demand for smartphones. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone A Photographer's Pipe Dream: Capturing New York's Vast Water System Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Xiaomi has previously described ambitions to go global, though it's never specified a target market. While Europe is a common destination for Chinese EV makers seeking to tap a more lucrative arena, considering they can often sell their cars with higher margins there, they do face punitive tariffs. Were Xiaomi to export its EVs to Europe, it would likely be subject to tariffs of up to 48%, including a base 10% import duty and additional countervailing levies of around 35% to 38%. Those measures were imposed by the European Union in response to what it deems unfair state subsidies provided to Chinese EV makers, which the bloc argues distorts market competition and threatens local manufacturers. Chinese EV makers also face tariffs of 100% if they want to sell their cars in the US. That's effectively shut them entirely out of the market. Read: Europe Warms to China's Investments in Face of US Tariffs Regardless, strong demand for the YU7 sport utility vehicle, which co-founder Lei Jun released at the end of June, is propelling Xiaomi's $10 billion gamble on the increasingly crowded EV arena. The company aims to become one of the world's top five carmakers within 15 to 20 years, despite a production crunch that's testing its ability to scale up. Wait times for the SUV have stretched to more than a year. 'The business model we have developed in China can also apply in overseas market when we get into Europe,' Lu told analysts on a call. 'We're doing the research and preparation. So far we have not got the specific product plan yet.' Revenue climbed to 116 billion yuan ($16.2 billion) in the June quarter, just edging past average analyst estimates. The tech giant delivered 81,302 cars, taking the total to more than 157,000 in the first half — on track to surpass 2024's haul. But smartphones — its original and largest business — slid 2.1% and missed the average projection by about 5%. While Xiaomi doesn't expect smartphones to see much growth this year, the company's goal is to increase its market share in China by 1% every year, Lu told reporters on a post-earnings call Tuesday. It expects growth of about 5 to 6 percentage points in shipments this year to 175 million devices, executives said. Losses from the EV division narrowed to about 300 million yuan during the period. Lei said at an investor meeting in June that the automaking venture is expected to turn profitable in the second half of this year. Xiaomi has gained some $120 billion of market value over the past year, galvanized by its drive into EVs that's gained momentum against much larger and more experienced rivals. The company seems to have shaken off a fatal accident involving one of its SU7 sedans in March, which had its Autopilot turned on. The crash prompted regulators to rein in the deployment of advanced driver assistance technology nationwide. The Chinese government also intervened in June to try to stop a long-running price war that has squeezed margins all along the auto supply chain. Xiaomi has avoided getting embroiled in the discounting thanks in large part to demand for its vehicles remaining very high. Xiaomi's overall net income roughly doubled to 11.9 billion yuan, helped by fair value gains on financial instruments. Still, the stock is now trading at more expensive valuations than BYD as well as global smartphone rival Samsung Electronics Co. What Bloomberg Intelligence Says Xiaomi's robust 3.2 percentage point EV gross margin sequential growth in 2Q reflects improving economies of scale and a favorable product-mix shift, helping together with solid internet-of-things growth to offset smartphone headwinds. The ramp-up of Xiaomi's second EV factory and a rising sales mix of the YU7 SUV could boost margin, supporting breakeven in the EV segment by end-2025 and potentially driving a 2025-26 profit beat. - Steven Tseng and Sean Chen Click here for the research. Xiaomi is grappling with a slowdown in its core business and sluggish consumer spending. Along with rivals Apple Inc. and Huawei Technologies Co., it's been offering steep discounts over the big June shopping festival in an attempt to lure shoppers, pressuring margins. AI and chip design is another arena where Xiaomi is ramping up resources. The Beijing-based firm unveiled a 3-nanometer chip called the Xring O1 chip, designed to power devices including the Tablet 7 Ultra. Lei said the company would invest $7 billion this decade into semiconductors. (Updates throughout with context, comments from press call.) Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates Survived Bankruptcy. Next Up: Cultural Relevance? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data