Volkswagen Struggling To Make Business Case For Budget Sub-Brand0
Reports that Volkswagen was working on a budget sub-brand to go head to head with cheaper brands like Dacia in Europe first surfaced in late 2012. The most recent advancement in that saga is brought to us by Autocar, who says VW is looking to find a balance between necessary quality and safety levels while still keeping the overall cost of the cars down.
“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 head of research and development, Dr. Heinz-Jakob Neusser, told Autocar at the Geneva Motor Show.
VW is having a hard time meeting the quality levels it’s used to providing while still remaining on track with the 6,000-8,000 euro price point they need to meet to make the venture worthwhile. As such, a business case cannot currently be made for the budget sub-brand.
However VW said the project is “under consideration” as opposed to being postponed or put on hold altogether. VW hopes the sub-brand, if it ever comes into fruition, will help them tap into markets where cheaper vehicles like the Dacia Sandero thrive, such as in China, India and in other countries across Asia, South America and Africa.