Volkswagen, the German automaker whose name translates to the “People’s Car,” is creating a low-cost sub-brand that will offer products to people in emerging markets.
According to Volkswagen head of research and development, Ulrich Hackenberg, the automaker has garnered expertise in low-cost vehicles production and will create products that are tailored to these individual markets.
“In India we build the Vento and a local version of the Polo that only costs around €7,000 ($9,300). In China we’re planning a more affordably priced car in the size of a Seat Toledo,” he said.
However, taking a market segment between €5,000 and €7,000 would prove to be the real challenge. Careful considerations must be weighed to what sort of content should be taken out in order to make the package as affordable as possible. Ulrich Hackenberg adds, “Here you really have to closely look at what can be done away with, but those cars would not be sold under the name Volkswagen, more as their own brand.”
The low cost car will likely be a roomy sedan platform that can also be built in a van body style. Volkswagen has not confirmed whether the vehicle will be manufactured in China.
[Source: Automotive News]