The American city car segment is too price-driven, according to a top executive.

When we drove the last-generation Polo in Germany three years ago, Volkswagen executives told us they were considering selling the new model in the United States for the first time in the nameplate's decades-long history. Those plans have been canned, however.

"It doesn't make too much sense for us to bring a car like this, which has the substance of a class higher, into a segment that is so price-driven in America," Juergen Stackmann, Volkswagen's global sales boss, told Automotive News.

In North America, many consumers buy a Polo-sized car for its unbeatable price. Price is important in Europe, too, but there's a big chunk of the population looking for a small car that's easy to park in crowded cities, and with a small engine because it's cheaper to register. They're willing to pay extra for big car features like adaptive cruise control and state-of-the-art infotainment tech, so transaction prices often get pushed close to Golf territory.

In Germany, the new sixth-generation Polo (pictured) starts at 12,975 euros, which converts to approximately $14,500. In the United States, its rivals would include the Ford Fiesta -- including the popular ST hot hatch --, the Honda Fit, and the Toyota Yaris.

Stackmann explained a full 50 percent of Golf buyers go for the GTI variant, which carries a base price of $25,595. "This is essentially where we start. Therefore, it makes little business sense to bring the Polo to the U.S. currently," he explained.

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Finally, he added Volkswagen of America has chosen to focus on two key segments: sedans and crossover. Those are the segments that "make volume and business sense" in the U.S. The city car category expanded a couple of years ago when gasoline prices sky-rocketed, but it deflated as soon as prices began to drop. Consequently, giving American motorists a sub-Golf model is very low on Volkswagen's list of priorities.