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This seems to be an essay question for various schools. There is no easy answer to sales forecast failures or successes. In this case VW was looking for the New Beetle to be a 'halo' car that would drive sales of it's mainstream models, but not outsell them. They underestimated it's appeal and the oncoming popularity of the 'retro' styling other new car manufacturers jumped on afterwards.Car manufacturers in general did not recognize the market for this new retro styling approach until after VW's success. VW essentially took a chance and broke new styling ground with this car with results no one predicted. In hindsight, playing on one of the most iconic vehicles ever created was a good move for VW, it could have easily been a disaster also.

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Q: Why didn't VW managers more accurately forecast the sales potential for the new beetle?
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