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Volkswagen has big plans for the next-generation Golf, one that could move the iconic hatchback upmarket to a new niche market that’s above the current competition and just below the compact luxury segment occupied by the likes of the BMW 3 Series and Mercedes C-Class. The potential move is an attempt by Volkswagen to lure buyers who are looking into downsizing from premium models like the 3 Series and C-Class with more affordable alternatives that offer more cabin and luggage space than is normal in this segment, as well as top-class refinement and exceptional fuel economy. Volkswagen wants the next-generation Golf — the Mk8 — to be the top choice among those alternatives.

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