Back To The Roots: Volkswagen Plans Budget Brand

Bertel Schmitt
by Bertel Schmitt
back to the roots volkswagen plans budget brand

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.

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  • Speed3 Speed3 on Oct 12, 2012

    I don't see why Skoda isn't the ideal solution. They could have thier current model line and budget cars in emerging markets. Ford is considering a budget subcampact in addition to its Fiesta. Its also not uncommon to have subbrands within a marquis; such as the Prius family that are Toyotas, or even Corvette and Mustang are sub brands. Bottom line, VW does not need a 13th brand

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    • Ranwhenparked Ranwhenparked on Oct 12, 2012

      @th009 The Volkswagen Sedan (the old, Type 1 Beetle) was going for about $7,000 new in Mexico less than a decade ago, and inflation hasn't been that bad. They've basically already done it in the recent past.

  • Advance_92 Advance_92 on Oct 12, 2012

    I'd think if VW wanted to downgrade any of their brands it'd be SEAT before Skoda. Granted they've both had a lot of money invested in turning them into a sport (SEAT) and value (Skoda) line, but the former's a slower seller and does have a history of building old FIATs while Skoda - despite it's history on the wrong side of the iron curtain - designed and built their own material, and raced it.

  • Grrr Grrr on Oct 12, 2012

    VW has already to some level been doing this. A bit like the comparisons of the new Datsun with the Mexican Nissan Tsuru, the new VW cheap brand could start with for example the VW Citi Golf.

  • SCE to AUX SCE to AUX on Oct 12, 2012

    Does this mean the Up! will need to be re-branded?

    • Vojta Dobe Vojta Dobe on Oct 12, 2012

      Nope. Up! is not even remotely a budget car. It's actually quite expensive for its class. And by the way, $6500 car is nothing that would require Tata Nano level of simplicity. Here in CZ, a Renault Thalia costs about $7,700, even with 20% VAT. And it's still something that can be considered a "real car".

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