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Old 12th October 2012, 17:27   #1
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Default VW Plans Budget Brand To Rival Dacia

Came across this interesting writeup in Autocar UK.

It seems that VW is planning a budget brand , or to put it in a simple way, a line of cars , below the UP! supermini for emerging markets.

What's interesting is that the article specifically mentions :
"Rumours are the Volkswagen Group could use a new low cost brand to further penetrate potentially lucrative Asian, Indian and Latin American markets as well as expand its sales presence in Eastern Europe, the Baltic
region and Africa."


The article mentions launch timelines as 2014 which means that work on these new models must be at a pretty advanced stage as it normally takes 3-4years for a OEM to develop a new vehicle.

Source: Autocar UK

Last edited by GTO : 13th October 2012 at 14:05. Reason: Please do NOT post scans of copyrighted content
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Old 12th October 2012, 19:31   #2
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Default Re: VW Plans Budget Brand To Rival Dacia

I guess this means they don't want to take the seat brand more downmarket than it already is. Creating a new brand has both positives and negatives.

Most important now is how they go about brand building this. Am assuming their cars will be engineered well and be of pretty decent quality.
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Old 12th October 2012, 23:24   #3
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Default Re: VW Plans Budget Brand To Rival Dacia

what? another brand? wasn't Skoda already their low cost brand?
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Old 13th October 2012, 00:08   #4
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Default

Quote:
Originally Posted by 14000rpm
what? another brand? wasn't Skoda already their low cost brand?
just look at the prices of skoda cars.
Those are far from being low cost.
Even the interior quality is as good as Germans.

I suppose for making the low cost brand, vw will lose the quality that is generally associated with it.
and come down to the levels matching the Japanese

Last edited by agambhandari : 13th October 2012 at 00:28.
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Old 13th October 2012, 00:12   #5
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Default Re: VW Plans Budget Brand To Rival Dacia

Quote:
Originally Posted by agambhandari View Post

I suppose for making the low cost brand, vw will lose the quality that is generally associated with it.
But might truly become "people's car" in India, which is the actual meaning of VW.
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Old 13th October 2012, 01:04   #6
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Default Re: VW Plans Budget Brand To Rival Dacia

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Old 15th October 2012, 17:44   #7
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Default Re: VW Plans Budget Brand To Rival Dacia

Consequence of their Suzuki game plan failure, I reckon. Suzuki would've been that low cost brand, but the Japs didn't budge.
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Old 28th October 2012, 18:51   #8
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Default Re: VW Plans Budget Brand To Rival Dacia

I think this is a right move by VW to create a budget brand to fight suzuki, hyundai and chase volumes. VW can now position itself as slightly premium offering with products like Polo 1.2TSI, Polo 1.6TDI. I think there is a huge gap between Japs/Korean and the Merc/BMW/Audi that VW can try to fit in the middle. It can also avoid the competition/cannibalisation with Skoda!
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Old 28th October 2012, 22:13   #9
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Default Re: VW Plans Budget Brand To Rival Dacia

There is a big difference between a 'cheap car' and a 'VFM car' in India. Its this difference that some manufacturers fail to understand while some others have capitalized on this to be successful in Indian market.

Going by the way VW and Skoda has been treating their so-called premium customers currently when they face an actual problem, I can't imagine the service quality that their so-called 'cheap brand' customers are going to get!

Without getting the service portfolio right, they can never get moving in the small car segment where a delay in service means their customers are left without a car unlike the premium segment where at least some of the customers might have an additional car at home with which they can manage for a few additional days when their premium car spends time taking a vacation in the service station.
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Old 28th October 2012, 22:24   #10
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Default Re: VW Plans Budget Brand To Rival Dacia

Dont they already have SEAT to bank upon?
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Old 28th October 2012, 22:50   #11
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Default Re: VW Plans Budget Brand To Rival Dacia

Seat is again a rebadged VW - not much cost savings there.
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Old 29th October 2012, 02:27   #12
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Default Re: VW Plans Budget Brand To Rival Dacia

I don't see the point of this, the Polo and Vento are not particularly upmarket, neither is the Rapid. What are they going to cut?

And Dacia is not being sold cheap in India inspite of some pretty poor interiors. Its the ride and engine selling the car, not the brand.

VW already has Skoda, Seat and their own brand. More than cheap its value folks are going for. The XUV is not cheap, neither is the Duster. Infact most of the cars in India are more expensive than their counterparts in the US and UK. Look at the Jetta pricing here and in other countries, you can't get volumes with these prices.
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