Volkswagen’s budget brand likely

Over recent weeks rumours of a budget brand to be created by Volkswagen have emerged. That talk has now been given credibility thanks to Volkswagen’s R&D boss, Ulrich Hackenberg.

Speaking to Autocar, Hackenberg admitted to “following the Dacia story very intensely”. Dacia is owned by Renault and is perhaps best known for the light-hearted jokes made at its expense by James May on Top Gear. However, it turns out the brand is kicking goals with increasing sales.

Hackenberg hasn’t missed the opportunity a budget brand presents, either. “There is now a big segment growing below us,” he said.

“In China for example, we’re selling cars for less than ever for €8000 but there are brands selling for €6000. It makes sense to rival these brands, we’re analysing it and pre-thinking it.”

It would appear that any Volkswagen sub-brand would likely use recently retired model lines as a basis, thereby ensuring costs can be minimised. “We have technology that has been invested in and improved over time, and it is easy to share costs with parts that are already available,” Hackenberg explained.

While acknowledging the success of Dacia, Hackenberg hinted Volkswagen would have eyes on a much bigger prize. “Dacia is not in big markets like China, so there is a lot of space to grow more,” he said.

[Source: Autocar]