VW Considering a New Budget Brand?

Yes, one that's cheaper than Skoda.

You can’t even count them on two hands. 12. That’s how many brands are currently under the VW Group umbrella. It’s an impressive portfolio, one that includes everything from the budget-minded Skoda to the extreme of Lamborghini. In some emerging markets, however, even Skoda is considered to be pricey. So instead of bringing Skoda down market, the VW board could approve as early as this summer the automotive giant’s 13th brand. This idea has apparently been around for some time now, but a proper business case simply couldn’t be made.

Profitability wasn’t a guarantee. This is a business, after all. Now, however, there’s apparently money to be made, and if approved, this new brand could hit the market by late 2016 or early 2017. And where exactly will it be sold? China. Other markets could also include India, South America, Eastern Europe, the Baltic region and Africa. Production would also likely take place in China, with pricing likely to start well below $10,000.

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