The latest reports in the automotive industry are indicating Volkswagen is still planning to introduce an entry-level sub-brand as Skoda no longer fulfills this role since it has been taken upmarket. While at first there were some cost-related problems to deal with, it seems Volkswagen has managed to solve these issues and they are ready to green-light the first model part of its newly established sub-brand. The decision will likely be taken in the next few weeks and it seems everybody is on board to create the budget brand which will likely see the light of day at first in China.
It is believed the sub-brand will target not only China, but also India and other emerging countries while the first model is expected to come out towards the end of 2016 or in early 2017. It will be developed and manufactured by one of VW’s Chinese partners (SAIC or FAW) and it is expected to carry a starting price of 7,500 euros. Volkswagen plans on selling 500,000 units per year with this upcoming budget brand.
Source: Manager Magazin and Reuters
