VW considering (another) budget brand
Europe's biggest car-maker could establish a cheaper brand than Skoda to rival Renault's DaciaThe Volkswagen Group is reported to be considering a budget brand that would be positioned beneath Skoda to compete with Renault’s Dacia brand.
According to a report in Germany’s Der Speigel magazine, Europe’s largest car-maker has firm plans to establish yet another brand that would compete with successful low-cost marques like Dacia.
If approved, the new VW-owned brand would be positioned below both Volkswagen itself – which has just launched the pint-size up! City-car in Australia, priced from just $13,990 - and its Czech and Spanish-based mass-market brands, Skoda and Seat respectively.
While VW also owns a minor shareholding in Suzuki, a new VW budget brand would join a plethora of upmarket brands in the VW group, including Audi, Porsche, Lamborghini, Bentley and Bugatti, as well as Volkswagen Commercial and VW’s truck brands MAN and Scania.
“The idea of a low-cost brand has been on the agenda at Volkswagen for some time,” Volkswagen spokesman Eric Felber told Der Speigel. “A decision has not yet been made.”
It’s believed VW is keen to establish a low-cost brand to break further into developing auto markets in Asia, India and Latin America, and to increase its presence in Eastern Europe and Africa.
“We need a cheap model positioned underneath the up! for third-world countries,” said VW’s union boss Bernd Osterloh in an interview with Germany’s Handelsblatt newspaper earlier this month, fuelling speculation that the Volkswagen Group is close to announcing a new affordable brand.
According to an Autocar source, one possibility is the use of VW models developed for China to form the basis of a range of entry-level models, including a replacement for the long-running Santana.
The Santana’s successor is expected to ride on a low-cost front-wheel drive platform similar to the one that underpins Skoda’s upcoming Rapid.
Dacia has made big inroads across Europe with cheap-but-cheerful models like the cool Duster crossover, which costs from around the equivalent of $A14,000 in the UK.
Read the latest news and reviews on your mobile, iPhone or PDA at carsales' mobile site…
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
