Ah, the sub-brand looks to be a new fashion, with more jumping on the bandwagon. It was earlier reported that the next brand to mull this path is Volkswagen, which is of course aiming to be the No 1 automaker in the world by 2018.

Now, it looks like things are firming up. Word from company sources has it that the German automaker wants to launch a new low-cost sub-brand by 2015 to take the fight to Renault’s Dacia and Nissan’s Datsun.

A decision hasn’t been made yet, but the move, it it comes, will aim to put budget models – the likes of which include a small sedan, minivan and wagon – priced between 5,000 to 10,000 euros into the market, the sources reveal. These are aimed primarily at countries such as Brazil, Russia, India, China, but could also end up being sold in Europe, they added. The low-cost option is gaining popularity in western Europe due to the economic downturn affecting the Continent.

The reports go on to add that the budget-based sub-brand will incorporate older engine and platform technologies, and the cars will be offered without extras like airbags and air conditioning to help keep costs low.

In terms of sizing, the new sub-brand’s models will be between 4.0 and 4.2 metres-long to offer a more practical option for families; VW’s cheapest car currently, the Skoda Citigo, is priced at around 9,000 euros, but the hatch’s 3.54 metre length doesn’t offer the needed versatility.