Volkswagen Mulling Entry-Level Chinese Brand

Volkswagen Mulling Entry-Level Chinese Brand
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Volkswagen is looking to add an entry-level brand for the Chinese market as a means of stabilizing its lead in the Chinese marketplace. “We are currently evaluating with our partner First Auto Works whether we need to add a domestic brand to enter the low-cost portion of the Chinese market,” Soh Weiming, executive VP for Volkswagen’s Chinese sales and marketing arm, told Automotive News.

Soh cited the fact that the “low cost” portion of the Chinese auto market makes up about 20 percent of sales. General Motors, Honda and Nissan all have their own sub-brands. Volkswagen is looking to double Chinese production to 4 million units a year by 2018, and is building new factories and expanding its current plants as well.

[Source: Automotive News]