Volkswagen's chief of research and development, Dr Heinz-Jakob Neusser, has confirmed that the VW Group is still working on the launch of a budget brand to rival Dacia – but admitted it is yet to find a solution that will allow it to prepare for launch.
The mooted Volkswagen Group budget brand had previously been reported to have hit repeated problems as a result of the company’s own internal standards for manufacturing.
Speaking at the Geneva motor show, Neusser said, "We are still working on the issue of the brand, but we haven't made a decision on it yet. We know we are not prepared to launch cars that don't meet our maximum quality aspirations, and we know we face a challenge.
"But now is not the time to say more than this. We will work on a solution and then talk about it if we find it."
Insiders report that the company is struggling to hit budget targets for the proposed cars while still maintaining what senior management has deemed “necessary” quality and safety levels. As a result, there is currently no business case for making the vehicles.
However, the project is reported to be “still under consideration” as opposed to being put on hold or cancelled. Insiders say that VW’s technicians have been impressed by how rival brands – including partner Suzuki, with which it is at loggerheads – have managed to create high-quality budget cars without pushing costs up.
The low-cost brand is being investigated by VW because it would give the group a direct rival to Dacia and allow VW to further penetrate lucrative markets in China, India and across Asia and Latin America, as well as enhancing its offerings in Eastern Europe, the Baltic region and Africa.
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Nathsky
Volkswagen Budget brand
Cardinal Fang
It's not the brand that's the
Beastie_Boy
Why don't they just introduce the VW Fox
(I think) they still sell the Mk1 Golf in South Africa, so it can't be that hard to do.
sirwiggum
Suzuki manages it by building
It is impossible to build a car in Europe to a budget. The original Mini was a loss maker. (The only reason the original Beetle may have drawn a bit of profit was down to the low tech and long production run.)
Orangewheels
Minimum Wage
Orangewheels.co.uk
marj
Not quite sure
Filippos
Wasn't Skoda their budget
The Group went after the perceived quality image in the 80s and 90s, and they succeeded. Now it seems that they are also suffering from the quality levels they attained... however, if you look at their recent Latin American lineup, the quality and safety of some of the models in the range leave to be desired: www.latinncap.com.
I am glad they didn't cancel the plan and that they are looking for a solution, though.
fadyady
“necessary” quality and safety levels
Einarbb
It might be a good idea to revive an old brand . . .
concinnity
Budget brand naming.
What is the German for 'People's Car' ?
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