Report – VW finally acknowledges entry-level brand for emerging markets image

It was back years ago – in 2012 – when Volkswagen first signaled its intention to develop a new, budget brand – and now after long and arduous debates it’s officially kicking off… from 2019.

Up until now the cars developed and built under the Skoda brand from Mladá Boleslav, Czech Republic, served as the go to affordable venue – but that’s not the case anymore. The brand has positioned its models more and more upmarket with each passing generation, so they are now breathing into the neck of the plush VW autos. Thus the German group has plenty of space for a true low cost brand that might follow the strategy penned by the Renault group for its now “smart buy” brand – Romania’s Dacia.

The yet to be named brand is not for Europe – not initially, at least – because it will be born for the world’s largest market, China. Apparently other emerging markets will follow over the next decade and as far as models are concerned we’re first looking at a small sedan and a midsize SUV. The most affordable will cost as low as 70,000 RMB (about $10,160 / €9,600 / £8,170) and production will take place in China with assistance from VW’s local joint venture FAW. The base architecture will be the old PQ35 – meaning there are shared commonalities with the fifth generation Golf, but also things can be had from the current MQB – while the SUV will also boast all-wheel drive.

Via Auto Express