Volkswagen wants to go back to its “People’s Car” roots, and plans to launch a new low-cost brand by about 2015, Reuters says. With a a price range of between 5,000 and 10,000 euros ($6,500-$12,900), Volkswagen wants to emulate the success of Renault’s Dacia. Nissan resurrected Datsun as a low-cost brand to help gain market share in lucrative emerging markets.
Volkswagen’s low cost cars would target the BRICs, but may also be sold in Europe, sources told Reuters.
According to Manager Magazin, Volkswagen is planning a budget sedan, wagon, and mini-van. It will lack pricey gadgets such as head airbags and air conditioners. Older engines and older, amortized platforms would be used.
By the time Volkswagen comes out with its low cost contenders, Renault/Nissan may already have hit a new lower price point. There have been ongoing rumors of Renault working on a car that in the €2,500 ($3,250) area. The most interesting engineering feat: Renault/Nissan can make decent money on a car that goes for petty cash.