Confirmed, the Volkswagen Group will have its brand low cost for emerging markets

Grupo Volkswagen

despite everything that is living the Volkswagen Group with the Dieselegate their plans to continue to be the main manufacturer of cars in the world continue to move forward. Their sales exceed the ten million cars a year, but they are still a lot of work ahead if you want to strengthen your domain. One of the headaches for the leadership of the German conglomerate is how to attack without dying in the attempt to the major developing countries.

If we stop to review the catalog of signatures that make up the Volkswagen Group, we see that all have a position in the market. The firms that are ranked lower are Seat and Skoda. However, with neither of the two can attack the emerging markets because its quality of finishes and technology has escalated so much in recent years that their sales prices are much higher than they are willing to pay for these cars in certain markets.

Separación Grupo Volkswagen

To solve this problem there is a solution that has already been discussed here a couple of times. This is no more nor less than the creating a signature low cost that is capable of competing in the major emerging markets with the models and more signatures sold. The creation of a new “Dacia” Volkswagen is more than feasible because the German consortium has a good arsenal of parts out-of-print that could be used by this firm without the costs escalating.

So good is the result of doing this experiment, that the Volkswagen Group has confirmed definitively that very soon you will have your first trademark low cost in the emerging markets. The reason is that it is so big is the market space that occupies the Volkswagen Group that the creation of a sub brand low cost would not affect in any way the normal operation of the rest of the firms of the group.

Continuing with this idea, the signature of the low cost of the German consortium could be in the market for the year 2019. Not to get in this year, yes it could make for the first or second year of the next decade (we all know how slow that work at Volkswagen). In addition, the first markets that would be China, South America and some other eastern countries. In addition, to avoid confuse your brand image, it is more than likely never see any signature model on european soil.

The platform that they would use these cars would be the PQ35 that is to say, the same that was used by the Golf of the fifth generation. This base, in spite of its long experience is still very valid to develop any car, and more if it goes to an emerging market. Knowing this, and with that the German firm has been reported the starting price of these cars should be around nine or ten thousand euros. Perhaps it is not a very low figure, but taking into account that it is manufactured in china by the joint venture local VW FAW their profitability is more assured.

Be to see how to accept the market and if their sales are as good as expected in the Volkswagen Group.

Source – Volkswagen Group