Volkswagen will have its brand of low cost do you finally? in 2019

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┬┐sound familiar to You? Yes, it is a Volkswagen Passat/Santana from the 80’s, but it looks “new”. Made in China until quite recently

┬┐Will be this time the definitive? If we take a look at the newspaper archive of Engine.it is, we see how we have touched the topic several times. Since 2012 has generated news that speak of a brand of a low cost Volkswagen, destined for the pockets more humble, given that the main brand is positioning itself very high up.

On this occasion the source is AutoExpress, which quotes executives from Volkswagen, which would have confirmed the launch of the brand -by far without a name – in less than two years in the chinese market. Now it’s a priority more than before, though you have not completed all of the consequences of the so-called Case Dieselgate. In China we say that it has given the same, there are hardly any diesel in that country.

why China?

The answer comes to be evident. In the 80 years the chinese market was very small, practically airtight to foreign manufacturers. A few took the risk to put money into a country more in developing than developed, among them Volkswagen. The joint-venture between FAW and VW has more than 30 years of history. China forced VW to join a local manufacturer, what is still happening today.

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The first Volkswagen Santana chinese came out of the production line 33 years ago. This copy was destroyed in an accident

Today, 40% of VW’s sold in China

In more than 30 years the German mark, of the hand of his forced dancing partner, has been gaining experience in that market until you have a significant knowledge of the same. The chinese are very little chauvinists, more than the country of origin of the brand value quality/price.

brands domestic are still losing ground, but success is still a segment in which cars are economical, but they resultones, more or less how it works Dacia. Volkswagen is not covering properly that niche, that in a market so large it is a business opportunity.

we Know that the new brand will take coupons technology platform PQ35 Golf V (now obsolete) and of the MQB that is used today. The first model will be a sedan whose price will drop to the equivalent of 10,000 euros, but there will also be a SUV version of five-and maybe seven-seater. The MQB will surely receive technological elements -since repaid – such as infotainment, or active safety systems.

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The Volkswagen Polo african is one of the cars more economical than VW sold today

In this way, the future brand attacks two of the segments where more cars buy the chinese budget humble. And what need there is of having SUV seven-seater in a country with more than 30 years of one child policy? It is another peculiarity of this country, in the 5+2 may travel to the parents, one or two stems, and the grandparents. When you need a car for everything, it is an alternative to the minivan to consider. The one child policy has been softened today.

Dacia began selling a sedan whose specifications were more thought out in Russia, the Maghreb or South america, the boulevards of paris. The Dacia Logan began as a car for emerging markets and immigrants with little money, but it had a success that was not expected, nor the own Renault. In developed countries, has left its image of cars peeled and covers a wider market.

Volkswagen is currently the world’s leading manufacturer

The SUV of Dacia, the Duster, is one of the most sold in the world in its category. Even the pockets more humble demand SUV. If Volkswagen of platforms already amortized the development costs plummet. That has been one of the tricks of Dacia, although the complete list is long.

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Volkswagen has lengthened decades the commercial life of some models, such as the Citi Golf (a mixture of Golf I and Golf II) in south Africa

After the initial introduction in China, factoring in markets such as the indian, the mexican or the brazilian. In all of these countries already operates Volkswagen, but with modern products and that is beyond the pockets of smaller depth. Volkswagen wants to reclaim that land that was abandoned, because let’s not forget that the German brand sold to do anything car stiff and stripped of equipment or power.

has Already been proven that some brands need to pull out a high end brand, and the inverse movement is also intelligent. Not devalues both the image of the parent brand, making cars for the developing world (or less developed), and you can use strategies that Volkswagen no longer have any meaning. The German mark dragged brutally to the commercial life of the Santana, the T2, the Beetle or the first Golf, to give some examples.

Volkswagen had not thought to sell this brand accessible in developed countries, but of course, Dacia also said the same thing. It makes more sense to expand in Africa, Latin america, Southeast Asia, Middle East… before committing your image in consolidating markets as the european. But all the possibilities are still open. The main brand will focus more to the mid-range/high, electric mobility and added services to the client (applications, services, rent, etc).