Skoda plans to build a low-cost sedan to compete with Dacia Logan

Article by Christian A., on August 29, 2010

Skoda, the Czech unit of Volkswagen AG, will soon have a low-cost family sedan to rival the Logan, which is a product of Renault's Dacia subsidiary.

CEO Reinhard Jung said that within two or three years, Skoda will have its new model go on sale for a price that is estimated to be between 10,000 and 12,000 euros.

While the CEO failed to provide more details, we´ve received reports from German press that the new car will be positioned between the Octavia compact and Fabia subcompact and would use components from both those models. Compared to the Logan, the new Skoda car will be priced higher and will be more upscale.

It will cost from 7,300 euros in Germany. The sales of low-cost cars are rapidly increasing and Skoda wants to take advantage of that by strengthening its product lineup.

While it is true that Skoda has been positioning its cars more upscale the past few years, Jung said the company continues to aim to produce attractive new cars for entry-level buyers.

Jung addressed the issue at the annual conference of Automobilwoche, a sister publication of Automotive News Europe.

Germany may be Skoda's top market but Jung expects Skoda sales to drop by 40,000 to 50,000 units next year as a result of the end of the subsidies provided to buyers who traded in their old cars for newer and more fuel-economic models.

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Topics: skoda, low-cost car

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