Half of all sales of the new Bora will be conquest for the Volkswagen brand, said Robert Buechelhofer, marketing director of the Volkswagen Group. That compares with 30 percent for the Golf.
Market launch in Germany is 6 November and the entry price is DM32,500 ($19,000) for the base 1.6-liter model.
The high level of conquest sales is partly because of the poor reception of the Vento, the Bora's predecessor in Europe, and partly because the new model is distanced further from the Golf, its hatchback cousin.
Volkswagen positions the Bora in a segment above the Golf - in the upper-medium league - where it already has the Passat. Bora will be priced below the Passat.
When production is fully ramped up, VW expects to sell about 150,000 Boras annually in Europe, for 5 percent of the segment, while Passat will get about 12 percent. About half of Bora sales are expected to be in Germany.
For the remainder of this year, Volkswagen expects to build 38,000 Boras in Wolfsburg, Germany, and 25,000 in Puebla, Mexico.
In North America the Bora will be called Jetta, which has been the name of the Vento there.
Volkswagen has ambitious plans for the car in the USA. It wants to sell 180,000 Jettas in a full sales year. This would account for about half of VW's North American sales volume.
VW Chairman Ferdinand Piech said a date for the North American launch has not been set. It could be October or November 'or even December.'
The interior detailing on the Bora is a cut above the Golf's. For example, the Bora uses much wood trim on the door and central console. The instrument panel air vents shut flat, as in the Passat.
The body structure is more rigid than on the Golf, giving the car a more sporty feel and allowing a reduction in the gaps between body panels.
The addition of a trunk also meant revision to the rear-end of the floor plan, and the spare-wheel has been moved. The suspension system is carried over from the Golf.
'This car is, at the moment, the best Volkswagen,' said Piech.
A Volkswagen spokesman said there was 60 percent commonality between the Golf and Bora. Investment in production facilities was about DM200 million ($117 million) in Wolfsburg and about DM100 million in Puebla in Mexico, said Volker Weisgerber, production director at Volkswagen.
The production technology is the same as for the Golf, so the production mix can be flexible.