Latest intel says Volkswagen is working on a budget brand. Regular readers are not surprised.
“The idea of a low cost brand has been on the agenda at Volkswagen for some time,” Felber said, adding, “A decision has not yet been made.”
Rumours are the Volkswagen Group could use a new low cost brand to further penetrate potentially lucrative Asian, Indian and Latin American markets as well as expand its sales presence in Eastern Europe, the Baltic region and Africa.
One scenario, according to an insider at Volkswagen’s Wolfsburg-based headquarters in Germany contacted by Autocar, is using models developed for the Chinese market, including the soon-to-be-revealed replacement for the long serving Santana, as a basis for the new brand.