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]

Topics: vw, low cost car

If you liked the article, share on:

Comments

Recommended

Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 2017
Two years ago, there was a patent filed by Honda Motors under the name “baby NSX”. It then had a angular sports car design that is clearly mid-engine, and had...
by - July 20, 2017
The long awaited 2018 Buick Regal GS has finally been revealed by the company, following several leaked photos and information in the past few months. The thing is, if you’ve...
by - July 20, 2017
Earlier this month, we learned that France has made moves to ban diesel and gasoline fueled cars by stopping them from entering the city. More than that, they plan to...
by - July 19, 2017
The new 2018 Rolls-Royce Phantom VIII is on the way, but still, all we had been seeing are camouflaged prototypes of the eight generation of this iconic nameplate. Fortunately though,...
by - July 19, 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