Volkswagen on path to launching no-frills brand in China

Article by Christian A., on March 13, 2015

Volkswagen Group is moving forward to materializing its plans to introduce a no-frills brand in China following delays. Volkswagen chief executive Martin Winterkorn said at the Geneva auto show that the carmaker will provide an update on the project "in the foreseeable future.” Winterkorn disclosed the project three years ago as he bids to gain more customers not only in China but also possibly in other emerging markets.

He said in 2014 that the no-frills car would have a tag of between EUR6,000 and EUR7,000 (between $6,500 and $7,600). Early 2014, the German carmaker announced that it had reached an agreement on the basic concept and design of the car, which will be produced in China.

Launching budget models provides another direction VW to gain more sales and profits, as its earnings have been driven by its premium Audi, Porsche and Bentley brands.

VW is currently the largest foreign carmaker in China, building vehicles cars for its namesake VW brand, Audi and Skoda marques through joint ventures with FAW Car Co. and SAIC Motor Corp.

In November 2013, VW China chief Jochem Heizmann divulged plans to hike production capacity at its Chinese plants beyond its previous annual production target of 4 million units by 2018. VW recently warned that its plans to increase earnings this year might be stymied because of economic troubles in Russia and Brazil.

If you liked the article, share on:

Topics: vw, china

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries