Report: VW budget sub-brand stuck in limbo above VW standards, expenses

The Volkswagen badge on a 2013 VW Up

Reviews in October 2012 claimed Volkswagen had begun investigating the creation of its personal price range brand. This came soon after obtaining failed to buy Malaysian vehicle company Proton or make a meaningful partnership with Suzuki, and soon after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun.

For VW, far more important than the query of what to contact it was how to build it profitably and in a way that did not damage the VW brand. In accordance to a report in Autocar, a satisfactory reply nevertheless hasn’;t been located. The hurdle is how to hit “‘necessary’; good quality and security ranges” at the value points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel mentioned VW was trying to get prices down to 6,000 to 8,000 euro ($ 6,784 to $ 10,379 US), about 2 thousand to 4 thousand euro under the value of the VW Up and in line with the value of a 6,790-euro Dacia Sandero in Germany.

In March 2013, VW announced, “We want to bring a real spending budget car to the marketplace in China in the foreseeable potential,” the most concrete move in that route soon after many years of planning to make a selection. Operating with nearby Chinese maker FAW, it was predicted that the automobile in question would seem about 2016, but as of November final yr a last vote on it needed to wait until finally this yr because “We are even now doing work on the cost side” and revenue choices for a car that “has to be durable, it has to be precise, it has to be safe.”

Even Fiat, another automaker long thinking about a price range brand beneath its Fiat line-up, was not certain how to squeeze any further funds from reduced-price goods but was confident that it could not be done by manufacturing in Europe. If VW has not however made the math operate with a joint venture in China, it will be exciting to see how it might construct a European go-it-alone enterprise case.

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