Likely following in the footsteps of Renault and its low-cost Dacia brand, Volkswagen will create an entry-level brand of its own for emerging markets.
Speaking with Auto Motor und Sport, VW’s head of research and development, Ulrich Hackenberg, mentioned the challenge of building an ultra-affordable car, saying that the company has to closely look at how much content it can omit in order to make the vehicles affordable.
Realizing the conflict that such cars would have with the brand’s well-established image, Hackenberg stated that “those cars will not be able to be sold under the Volkswagen name.”
Hackenberg didn’t provide details on the entry-level brand, but stated that Volkswagen was considering a sedan or van with a price of approximately €5,000 ($6,585). The new brand will be a joint venture between the German company and a Chinese partner.
With Nissan announcing earlier that it will revive its Datsun brand for emerging markets, it makes us wonder how many more automakers are contemplating (or finalized) similar low-cost product strategies.
