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.

Topics: vw, china

If you liked the article, share on:

Comments

Recommended

When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 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