Volkswagen is planning budget brand to rival Dacia image

Volkswagen is planning to rival Dacia with a new budget brand which should hit the market before 2015.

After Renault has announced that the company will move up-market in order to rival Volkswagen and that the gap left will be filled by its sub-brand Dacia, the German based automaker is planning to rival the Romanian company. According to the Volkswagen spokesman, Eric Felber, the idea of a Dacia rival has been on the minds of the company’s officials for quite some time.

“The idea of a low cost brand has been on the agenda at Volkswagen for some time. A decision has not yet been made”, said Eric Felber.

Volkswagen has to give up the new MQB modular platform in order to develop cheaper cars under a different name and they will also have to renounce equipment like the head airbags or air conditioning. The carmaker will have to get back to previous technology and older platforms in order to keep production costs low and the final product cheap and competitive. Emerging markets like the ones found in Asia will be the first ones to receive the new budged brand signed by Volkswagen. Rumor has it that the new brand will be introduced in 2015. Additional details are limited for the moment.

Source: Der Spiegel