Volkswagen to launch new budget brand.

[Hofmeister]

Volkswagen is planning to launch a new budget brand to challenge the likes of Dacia – and the bargain basement minis will be sold in Europe too. Prices for the yet-nameless new cheap VWs will start from just €6000, or £4800, according to paperwork seen by CAR. How can VW build city cars so cheaply? Volkswagen plans to build the new range of basic cars in China or India, through its existing partnerships in both countries. These are basic vehicles along the lines of Renault's successful Dacia brand - but because of VW's global scale it will bring them to Europe for sale here.

Three vehicles are on the drawing board: • A simple saloon, €6000 or £4800 • A boxy estate, €7000 or £5600 • A back-to-basics MPV, €8000 or £6400.

These will be simple vehicles based on existing architectures from the VW group – platforms which have already been amortised. CAR's sources suggest that the Polo/Golf box of bits will underpin these new budget VWs. The PQ24/25/35 architectures will mean front-wheel drive and reasonable, if not class-leading, dynamics and all engines will be EU6 compliant. Early Noughties Golfs and Polos weren't that bad, were they?

Won't the budget Volkswagens affect sales of the Up?

These new cheap VWs will be aimed at emerging markets, so will be very basic. A couple of airbags and ABS is your lot – you'll have to pay extra if you want air-con or other such niceties. Styling will be very rudimentary: boxy shapes are stiffer and require fewer pressings and these cars will require half as many pressings in the body shop as a new VW Golf Mk7. The baby Volkswagen will also be bigger than the Up, stretching between around 4000-4200mm. It's quite a different kettle of fish compared with the classy Up premium small car.

What will the new brand be called?

No word yet on the identity of Volkswagen's 13th brand. Senior sources have suggested to CAR that it'll be a new badge, not plundered from VW's extensive back catalogue. A final decision is due to be taken by VW's board in winter 2012. Word is the world budget car plan is at a very advanced stage – we understand production is scheduled to begin in the final quarter of 2014.

http://www.carmagazine.co.uk/News/S...-to-launch-new-budget-brand-priced-from-4800/

 

[Monster]

How times have changed, VW used to be a budget brand itself.

 

[Mafalda]

...I think Seat'll die...

 

[MBFanToDeath]

It's all about money. The damn money. Why? Where is passion? Yeah I see, there is passion for money. Sad but true. VAG is on right way with Toyota and GM.

 

[Bruce]

How times have changed, VW used to be a budget brand itself.

No kidding. A friggin Golf isn't what you'd call inexpensive anymore.

 

[Tumbo]

And I thought Skoda was the budget brand?

 

[MikeJ]

And I thought Skoda was the budget brand?

Compared to VW, yes. In the sense of Dacia, no.

As for VW's plans, they make perfect sense. There are loads and loads of people who would like a new car but for whom current VW Group products are too expensive.

 

[EnI]

Will they name it "Armenwagen" ? LOL

And present a badge looking something like this:

 

[MBFanToDeath]

^LOL

Oh dear God, please no more cars like Dacia...IMO for VW Skoda is well positioned and Seat too. I just don't want to see more 'cheap' cars on streets, like Dacia is.

 

[Centurion]

Where are they planning on selling this brand, I cannot imagine in the UK, Germany, France or Scandinavia.

 

[MikeJ]

^Dacia sells relatively well in Germany and France, what makes you think a VW group budget brand wouldn't?

 

[Centurion]

^Dacia sells relatively well in Germany and France, what makes you think a VW group budget brand wouldn't?

Cannibalisation of Lupo and Skoda sales would be the first thing to come to mind. In the flip side VAG would rather risk that than watching sales of Daewoo and Dacia climb up.

 

[MikeJ]

The comparable Skoda (I'm guessing that would be the Fabia) starts at 11,500 € in Germany, which means it's almost double the price.

 

[Hofmeister]

VW is approaching the critical phase of its plan to launch a range of aggressively priced base products. How aggressive? Well, we´re looking at €7000 for a four-door family saloon, €7500 for a boxy estate and about €8000 for a basic MPV.

Also on the wish-list are an even cheaper three-door hatchback for India, and a trendier five-seat crossover offered at around €9000. ESP and air-conditioning will probably cost extra, but the above prices include at least two airbags and ABS as well as the local taxes. Keeping complexity at a minimum, options will be bundled in three or four equipment packs. Since China calls the shots in this vehicle category, VW may tap its partner, First Automotive Works of Changchun, for assistance.

Is there a market gap for these bargain basement motors?

The segment for entry-level cars costing up to €10,000 will have grown to eight million units worldwide by the end of 2012. This equals a 13% share of the total sales volume. The biggest budget car market by far is China where every third vehicle is entry-level – that's over 3.8m units per year. Number two is India with 1.2m units and a 48% market share, followed by Russia with 900,000 units and a 38% share. A car sales goldmine surely awaits...

With 400,000 units and a meagre 3% take rate, Europe's love of premium badges ranks it at the bottom of this list. The biggest global players in the bargain basement are Dacia, Lada, Proton, Chevrolet and Suzuki, along with licensees like Perodua and Maruti. The Chinese dominate the local market, but at this point Geely, BYD, Hawtai and Brilliance are not yet ready to start any kind of serious export offensive.

Will these budget cars wear the VW badge?

The new low-cost cars will definitely not be marketed under the Volkswagen nameplate. Instead, VW will either create a new brand name or use the Tantus badge chosen for the Chinese electric car programme.

Interestingly, the new budget VW will measure up longer than the entry-level Up city car: 4200mm plays 3540mm. Underneath, it’ll be based on a version of the outgoing PQ platform which still serves the current Polo and Passat. Thanks to the no-frills engineering concept, the long written-off tooling and the inexpensive componentry, the cost benefit over the more flexible and space-efficient MQB is substantial. We're potentially talking about more leftovers than Boxing Day dinner here.

Want some numbers? The rear axle of the old Polo is for instance €250 cheaper than the hardware fitted to the future 2016 Polo VI. VW may save even more dosh by replacing the rear disc brakes with drums and binning power steering. Theoretically, the ‘Budget Car’ could be based on the ancient Jetta that’s still built in China. But since this model is a heavy beast and meets none of the upcoming crash or emission norms, it should make more sense to start from scratch.

Just how much car can I expect from a budget brand?

Standardisation is key when it comes to development of these bargain-basement ventures. CAR’s sources report each ‘VW-lite’ will get an identical 2500mm wheelbase, and see production in cheap labour countries (allowing a relatively low level of automation). Expect plenty of common components including spring-strut front suspension and straightforward electronics.

Whereas the body panels of a Polo or Golf go through five different stamping steps, the shape of the ‘Budget Car’ must be defined in only two to three stamping cycles. The result is a basic, still stiff, compact car. On the powertrain front, VW intends to use the older normally-aspirated, indirect-injection two-valve 1.2 to 1.6-litre three- and four-cylinder petrol and diesel units. They'll be revamped for improved fuel economy and reduced emissions. A five- or six-speed manual will be standard, but there is also a seven-speed DCT auto in the offing.

So, is VW’s budget brand going to get the green light?

According to the Wolfsburg grapevine, the VW group will soon announce the birth of its thirteenth brand. No, it´s not going to tug at the heartstrings like Lamborghini, but while the ‘Budget Car’ may lack emotional appeal, it could score big in terms of quality, reliability, driveability and profitability.

http://www.carmagazine.co.uk/News/S...wagens-budget-brand-close-to-production-2013/

 

[Gianclaudio]

V The biggest global players in the bargain basement are Dacia, Lada, Proton, Chevrolet and Suzuki, along with licensees like Perodua and Maruti. The Chinese dominate the local market, but at this point Geely, BYD, Hawtai and Brilliance are not yet ready to start any kind of serious export offensive.

Funny they said that, as all these chinese brands are present in many south american markets..... so they do export cars. Still shitty, quality, at best.

 

[EnI]

Yep, here comes the "Armenwagen", the famous AW:

 

[mini_cooper4]

Will they name it "Armenwagen" ? LOL

And present a badge looking something like this:

LOL

 

[HighestOfHigh]

How times have changed, VW used to be a budget brand itself.

Yea...I thought it still was.

 

[Mr. M]

Funny they said that, as all these chinese brands are present in many south american markets..... so they do export cars. Still shitty, quality, at best.

Chinese carmakers increasingly cannot compete in their home market, so they go other emerging markets to get market share. This surprised me, I read it from Financial Times. I guess even the Chinese know their own products aren't up to par!

 

[Gianclaudio]

Chinese carmakers increasingly cannot compete in their home market, so they go other emerging markets to get market share. This surprised me, I read it from Financial Times. I guess even the Chinese know their own products aren't up to par!

And that crap is sold over here, as dealers move the prices up, for the traditional brands.