DETROIT: VW eyes new budget brand
By headlineauto | 14 January 2013
Volkswagen will decide this year whether to introduce a new budget brand aimed at developing markets.
If the company decides to go ahead, it would almost certainly start in China, where it achieved a near-25% increase in sales to 2.15m in 2012.
But India and other markets such as Mexico could also be targets for a low-cost VW brand.
The aim would be to bring a car in about GBP1,200 (US$1,900) below VW's current cheapest offering, the up!, according to Ulrich Hackenberg, who heads the company's product planning and engineering divisions.
"It will be tough but, with our experience, not impossible," added Hackenberg. "Such a car can only be built in a country with low production costs.
"The suppliers and the materials would have to be localised - deeply localised. By sourcing the second and even third-tier parts in those countries we could save a lot of money."
One issue is the different requirements of the various new markets. China would want a fairly large car while India would want something small so the fundamentals would have to be "flexible and capable of derivatives".
Hackenberg added: "We would be thinking to sell it under a new brand name because you cannot enlarge the offer of any brand (VW) too far."
It would also have to be more than just a basic budget car, Hackenberg said. "It has to fulfill not only mobility - the customer wants to love his car. It needs to have good styling and offer optional equipment which the customer can maybe buy later."
Hackenberg said any such car from VW would meet more than basic safety requirements.
"We would make our decision based on the competition in that market. If the competitors had a three-star car then maybe we would aim to go for four stars."
Sectors: Vehicle manufacturers, Vehicle product & design
Companies: VW
View next/previous articles
14 Jan 2013 -Currently reading -
DETROIT: VW eyes new budget brand
Related company research
VW 2010 company profile edition 2
This latest edition just-auto company profile is part of a major series of reports that will provide you with convenient and concise analysis on the world's largest component and vehicle manufacturers. Each individual company is profiled in a consist...
Volkswagen AG - SWOT, Strategy and Corporate Finance Report
Volkswagen AG - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corpo...
Volkswagen AG - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....
Related articles
When Porsche GB invites you to the Scottish Highlands to drive its new Cayman, you tend to reschedule whatever else was in the diary. Glenn Brooks was just-auto's man on EasyJet to Inverness.
Read more on this hot issue
The 2013 Detroit Motor Show (NAIAS)
The North American International Auto Show (NAIAS) - 'Detroit Show' - is January's big auto show and it is entering its 25th year as an international event. Coverage from our team on the ground at the Cobo is gathered together here.
There are currently 3 comments on this article
Quote:Well, aside from their existing plethora of brands, they've got a few in the closet to work with - Wanderer, NSU, Horch, Auto Union.... but probably best-suited would be the DKW brand.
I don't think they need to open this closet (Wanderer, NSU, Horch, Auto Union... or DKW). VW is, in my view, best prepared for future trend; L1 or XL1. Why these cars are staying in the closet? I ignore the reason. But when time comes, they will be ready to spring from the gates... I'm sure other automakers are working on the similar cars, but are maybe less advanced...
Consumers are ready to pay more for transportation if they see a real and quick returns...!
Mark Kmicikiewicz said at 8:07 pm, January 22, 2013
Reply to this comment