VW considers low-cost car brand in China
Volkswagen AG may build its first low-cost car in China, development chief Ulrich Hackenberg says, as the automaker considers the sale of no-frills vehicles to compete with Renault's Dacia and Nissan's Datsun.
More than 3 million so-called budget cars are sold in China every year, making it the biggest market for the segment.
Volkswagen would tap growing demand by teaming up with one of its two Chinese joint venture partners if the project is approved, Hackenberg told Reuters.
"That's an issue we're currently looking at," Hackenberg said in an interview at VW's Wolfsburg headquarters.
Volkswagen is looking at a price range of between $6,700 to $13,500 (41,700 yuan to 84,000 yuan) for the cars, which may include a minivan, station wagon and a small sedan, company sources said on October 12.
The cars would be aimed at fast-growing markets like Brazil, Russia, India and China, but may also be sold in Europe, according to German media reports.
Company CEO Martin Winterkorn said at the Detroit auto show on January 13 that a decision on a budget car for emerging markets would be made this year.
The company is calculating cost targets for the car and has not decided yet whether it would get the VW badge or a different brand.
"If one enters this segment for the first time, it's necessary to keep investments very low," Hackenberg said.
VW would use pre-existing underpinnings from models that are out of production or near the end of production, rather than develop costly new components, he said.
Hackenberg said it was unclear whether the automaker would bring the budget car to Europe because it could cannibalize Seat and Skoda. VW is not yet sure whether there would be demand for such a vehicle in Europe, he said.
Volkswagen would tap growing demand by teaming up with one of its two Chinese joint venture partners if the project is approved, Hackenberg told Reuters.
"That's an issue we're currently looking at," Hackenberg said in an interview at VW's Wolfsburg headquarters.
Volkswagen is looking at a price range of between $6,700 to $13,500 (41,700 yuan to 84,000 yuan) for the cars, which may include a minivan, station wagon and a small sedan, company sources said on October 12.
The cars would be aimed at fast-growing markets like Brazil, Russia, India and China, but may also be sold in Europe, according to German media reports.
Company CEO Martin Winterkorn said at the Detroit auto show on January 13 that a decision on a budget car for emerging markets would be made this year.
The company is calculating cost targets for the car and has not decided yet whether it would get the VW badge or a different brand.
"If one enters this segment for the first time, it's necessary to keep investments very low," Hackenberg said.
VW would use pre-existing underpinnings from models that are out of production or near the end of production, rather than develop costly new components, he said.
Hackenberg said it was unclear whether the automaker would bring the budget car to Europe because it could cannibalize Seat and Skoda. VW is not yet sure whether there would be demand for such a vehicle in Europe, he said.
