Volkswagen’s “low-cost” line coming to China in 2017. Branded how?

May 14, 2014 by Bertel Schmitt


Volkswagen’s supervisory board approved plans for a range of low cost models, and they will be launched in 2017 onto the Chinese market, The Nikkei reports from Volkswagen’s shareholder meeting in Hanover, Germany. CEO Martin Winterkorn said the car will be targeted at first-time car buyers. At a rate of around 60 cars per thousand people in China (USA: more than 800), there is no shortage of first-time buyers in the Middle Kingdom. According to the Nikkei, Winterkorn “did not touch on specifics, such as pricing, he hinted a final decision will be soon made.”

Volkswagen has been thinking more or less aloud about a lower priced brand for several years now, so the decision does not come as a big surprise. The Nikkei, along with the better informed parts of the industry, expect Volkswagen “to keep the price under 7,000 euros ($9,643) and to use a different brand name.”

It will be interesting to see what brand name is used, and the choice will indicate how serious the company is about the budget range. Read more »