As they continue going for global dominance in the industry, VW needs a better foothold in emerging markets.
In the wake of Nissan's announcement of their plan to revive Datsun as an entry-level brand, it appears that another major automaker is looking to create a new brand of their own. According to a recent report from German publication Auto Motor und Sport, Volkswagen is looking into the possibility of creating an entry-level brand for emerging markets. Just like Datsun, these emerging markets include India, Indonesia, and Russia.
Ulrich Hackenberg, VW's head of research and development, told the publication that building an inexpensive car is a "real challenge" and his company was exploring ways they could package these cars with modern features and still make them affordable. However, he clearly stated that these cars "will not be able to be sold under the Volkswagen name." This makes sense because Volkswagen is keen on maintaining their status as more of an upscale brand. It's also possible that VW may opt to team up with a Chinese partner in order to help keep costs down.
Hackenberg also mentioned that he'd like to see a sedan or a van cost only around €5,000. No timetable has been set just yet, but with VW's ever-growing global automotive empire (and their recent fallout with Suzuki), creating an entry-level brand for certain markets makes a whole lot of sense.