Goodbye Sharan, hello Microbus!

Volkswagen is about to introduce two versions of the retro-styled Microbus, large and small, as replacements for the Sharan and Caravelle in 2004.

The move will also sound the death knell for the SEAT Alhambra, which is built alongside the Sharan and Ford Galaxy in a factory in Portugal.

As Volkswagen and Ford have no plans to work together on future people carrier developments, the Microbus will be exclusively a VW design. A future SEAT MPV is not expected either, as bosses don't believe it fits in with the Spanish company's sporting brand strategy.

The Microbus will be based on the new VW T5 platform, which will form the underpinnings of a next-generation Transporter van, as well as the VW Touareg and Porsche Cayenne SUVs. In standard guise, it will be the basis of a Grand Microbus, which will replace the Caravelle and is believed to offer a spacious and luxurious interior. The large model is expected to account for the majority of US sales, but in Britain it will use a shortened version of the T5 platform, and is expected to feature a clever arrangement that will allow seats to be removed individually or folded flat to increase luggage space. This means that the car will appeal more to family buyers - especially as £20,000 versions are now likely to be offered.

Pete Frost