VW management board to approve new budget car

Article by Christian A., on March 22, 2014

The management board of Volkswagen is finally signing off a budget car built for emerging markets following a long scuffle to meet cost targets for the units, Manager Magazin said. The German business magazine said that VW's senior executives will approve the budget car in the coming weeks, with the supervisory board signing it off by the summer.

VW has been struggling for more than a year to meet internal cost requirements for the budget car, which may be sold for between EUR6,000 ($8,300) and EUR8,000. It may be produced in China, the biggest market for budget cars.

VW brand development chief Heinz-Jakob Neusser remarked at the 2014 Geneva auto show that it was becoming harder to hit cost targets for the budget car, adding it made no sense to sign off a vehicle that was not meeting in-house targets.

VW does not have a strong presence in markets like India and southeast Asia, which are ruled by no-frills models. Analysts have also questioned Volkswagen’s ability meet its goal of becoming the world's largest carmaker by 2018 without having a successful budget car.

A VW spokesman quipped that the German carmaker was working vigorously to develop the budget car, noting that a decision had yet to be taken. [source: Reuters]

If you liked the article, share on:

Topics: vw, low cost car

Comments

Recommended

Last year was probably one of the busiest years for the European New Car Assessment Programme, with a total of around 70 cars tested. But amongst that huge pack of...
by - January 16, 2018
For the longest time, women in Saudi Arabia were restricted from doing what men were able to do freely. And one of the most pressing issues was driving. In the...
by - January 16, 2018
Automakers that have teamed up with Formula 1, like Mercedes-AMG, develop the coolest road-going supercars just like the Project One. Aston Martin and Red Bull, on the other hand, have...
by - January 15, 2018
There is nothing more exciting happening this month than the 2018 Tokyo Auto Salon - especially with all the concepts that are being uncovered. Apart from the Toyota GR Super...
by - January 15, 2018
The very first time we ever saw Bentley’s SUV, the Bentayga, was back in September 2015 when it came out with the impressive W12 engine. A year after that, it...
by - January 15, 2018
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