Volkswagen officials finalise car design for its new budget brand. New marque should help VW Group rival the likes of Dacia and break into emerging markets

Volkswagen has agreed the concept and design of its new budget city car, according to reports.

Company officials told Reuters at the Beijing motor show that the car had been signed off, with project manager Hans Demant saying: "The concept and design are now in place. We will produce all components in China."

Approval for the new brand has already been given by VW's higher management, with its first appearance scheduled for 2016. The marque's first model is expected to cost around £5000 and be built and sold almost exclusively in China.

However, if the model proves successful, VW could expand its markets to include India, Latin America, Eastern Europe, the Baltic region and Africa.

The project has previously hit cost problems, reportedly because of trouble engineering a budget car that could still hit VW's high internal quality standards. 

The firm's research and development boss Dr Heinz-Jakob Neusser told Autocar at the Geneva motor show that "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".

VW's launch of a low-cost brand would put it into direct competition with the likes of Dacia, as well as allowing the group to push into lucrative markets like China. 

The new brand would be VW Group's 13th marque, and will aid the group to reach a set target to become the world's biggest car maker by 2018, surpassing Toyota.

Volkswagen officials in the UK wouldn't comment on plans for the new brand.

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Comments
7

28 April 2014
Do these cover Passat electric parking brakes, Golf/Bora undertrays, EA888 cam chain tensioners, Polo ignition coils, Turbo/supercharged engine failures... need I go on?

28 April 2014
.....VWs are among the most unreliable cars I have owned and this is reflected in the annual JD Power Survey and the like.

28 April 2014
erly5 wrote:

.....VWs are among the most unreliable cars I have owned and this is reflected in the annual JD Power Survey and the like.

Not just VWs, but the majority of German cars are unreliable and poorly built. The premise of German engineering integrity and excellent build quality is a myth, whether it be Porsche, VW, Audi, BMW or Mercedes. And I've had German cars in the past and have experienced their woeful reliability. Overpriced and totally average too.

28 April 2014
Dacia are quoted as producing a smaller car in 2015, based on the present Renault Twingo, but this will be made in Russia, apparently.
I doubt VW will want to miss a trick, so presumably they'll be planning a European launch sometime for their budget brand. They could always base this on the Fox, which always looked like a budget model in everything but price.
It seems everyone's looking at budget brands now that manufacturers realise that not everyone has money to burn when it comes to choosing a car.

28 April 2014
Remember when VW was the budget brand? "Peoples car" selling aircooled curiousities?

Remember when SEAT was the budget brand? Ex-Fiat licencee selling cheaper Polos and Caddys?

Remember when Skoda was the budget brand? First VW era product was still heavily based on their first modern front engined model.

And so with NeuBrand, which will sell well, and some marketing type will decide to push prices up to 'sub-premium', and the cycle begins again.
Perhaps they should have a word with SAIC, one of their China JV partners, who have the old Austin and Morris marques?

28 April 2014
VW Polo recently made an appearance among the least safe vehicles in its class in an Indian crash test. Where were the VW's high internal standards then?
A profiteer would dodge the costs where it can and some journalists help them by reinforcing myths about the non-existent (perceived) quality and reliability of their cars.

3 June 2014
The brand might have a low entry price but wait until you realise you need an aircon or electric windows & watch the "budget" price ruin your budget.

VW have a car named the Polo Vivo, essentially a cheapened mk4 polo, that began affordable but did not even have an aircon, in South Africa!

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