I think this is a great idea. Will they sell many like this? No. Will that price get people in the door? Yes. bring people in with the cheap car, then they say, "I love it! but put a radio in it. And AC. Can I get it with power mirrors?" And boom. Now you're selling a Jetta that's $2000 more, and the customer still thinks they're getting a cheap car. I know if I had a very limited budget, this is the car I'd choose over a Hyundai or used Honda or something of the sort.
Honda did this for years with cheap Civics. 4 Speed manual, driver's side mirror only, no hubcaps, no AC, AM/FM radio only, vinyl seats, etc.