Volkswagen Group signs off on budget car – report

Volkswagen Jetta CKD 15

Reuters has reported that the Volkswagen Group has signed off on the design and basic concept of a sub-€8,000 (RM36k) city car for its yet-to-be-launched budget brand.

Project manager Hans Demant affirmed this at Auto China in Beijing, adding that they would produce all the components in China. At least initially, the new marque’s first model will be built and sold almost exclusively in the Middle Kingdom.

If it does become successful, however, it could reach other emerging markets such as Latin America, Eastern Europe, India and South East Asia, where low-cost, no-frills cars reign supreme, and where brands such as the Renault-Nissan Alliance’s Dacia and Datsun marques have been making significant inroads.

Demant’s comments contrast to those from the research and development chief for the Volkswagen brand, Dr Heinz-Jakob Neusser, at the Geneva Motor Show in March. Neusser claimed that it was becoming more difficult to justify the cost of building the car, saying that it did not make sense to approve a project that did not meet in-house targets.

The group had reportedly been struggling for more than a year to hit cost targets while still meeting its own internal quality standards. But it is clear that the company sees the value in investing in such a project – Volkswagen lacks a strong presence in developing countries, a problem that needs to be addressed promptly if it still intends to be the world’s largest car manufacturer by 2018.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Current quality cars also like budgeted quality. Ada hati nak manufacture budget line up.. daaaa

    Like or Dislike: Thumb up 12 Thumb down 6
    • Wisdom on Apr 29, 2014 at 3:37 pm

      “This new model will be equipped with new budget gearbox, we aim to help those tow-truck driver, technician & foremen so they will have jobs”
      -boss

      Like or Dislike: Thumb up 12 Thumb down 4
  • The Truth About DSG (Member) on Apr 29, 2014 at 3:01 pm

    If the German made DSG alone can give so many problems, now this car, fully Made in China, what is going to happen? Will the tyres come out while the car speeding?

    Like or Dislike: Thumb up 8 Thumb down 10
  • VW not a high brand anymore.. prfftt.. poor owner

    Like or Dislike: Thumb up 12 Thumb down 4
    • Chris (Member) on Apr 29, 2014 at 5:17 pm

      Back to it’s roots, Hitler’s Beetle. “People’s car” all over again.

      VW Beetle SV anyone?

      Like or Dislike: Thumb up 8 Thumb down 5
    • Low Budget on Apr 30, 2014 at 9:22 am

      Note that they won’t use the VW brand name, so brand VW will still be a reputable brand. Its too risky for them to use VW name when all parts are produced in the Middle Kingdom.

      Like or Dislike: Thumb up 0 Thumb down 2
  • fast5 on Apr 29, 2014 at 3:04 pm

    Good for Germany and German ppl… but when it reach here will be around RM78k-RM82k “excise duty here, excise duty there” and make excuses like “rising cost doing business”
    Haiz malaysia G doing business…..

    Like or Dislike: Thumb up 26 Thumb down 2
    • Low Budget on Apr 30, 2014 at 9:28 am

      Just like DATSUN,they will not export to Boleh Land. Imagine a DATSUN from India and an imitation VW from China that perceive to have better quality than the ‘sicken’ P1! Better tax them kau-kau.

      Like or Dislike: Thumb up 1 Thumb down 2
  • Green on Apr 29, 2014 at 3:25 pm

    I think the VW already got the Budget Look.
    In and Out.

    all same design and the 1990 interior.

    Datsun also giving us old design and old interior.
    Same Approach as VW.

    Like or Dislike: Thumb up 8 Thumb down 7
  • Joker on Apr 29, 2014 at 3:34 pm

    budget brand.. Proton??

    Like or Dislike: Thumb up 8 Thumb down 3
  • TeresaCockCNYClown on Apr 29, 2014 at 3:48 pm

    Low quality cars for China only? Perfect match.

    Like or Dislike: Thumb up 5 Thumb down 3
  • nabill (Member) on Apr 29, 2014 at 4:01 pm

    Could hav been a proton if it wasnt for da G rejecting vw’s takeover n being ‘smart’

    Like or Dislike: Thumb up 6 Thumb down 2
  • BNCockAssClown on Apr 29, 2014 at 6:32 pm

    Low quality cas for BN supporters. Padan muka voting BN and get crap cars with high price.

    Like or Dislike: Thumb up 18 Thumb down 9
  • EnergyAnalyst on Apr 29, 2014 at 6:43 pm

    Chinese Skoda! Coming to malaysia ? Over India than malaysia made VW Polo’s body ? That would remain to be seen—would govt even do that do UMW Perodua ? Not likely – get the like of ASEAN’s made Suzuki agyo or Honda Brio in first , only then I will start to believe n even hope

    Like or Dislike: Thumb up 2 Thumb down 2
 

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