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Volkswagen has overhauled the midsize Passat sedan into a notably bigger car, inside and out, and cut the base price by a stunning $7,180. It goes on sale in September as a 2012 model.

VW says that more than 85% of the cost savings for the big price cut came from moving production to the U.S., so both costs and revenue are in dollars. The old Passat was caught in a currency-exchange squeeze of costs in expensive euros and revenue in weak dollars.



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