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The Volkswagen Group’s new budget brand, which is no new topic of course, has been finally confirmed, and by none other than chairman Martin Winterkorn himself.

Winterkorn, who recently survived Ferdinand Piech’s attempt to oust him, confirmed the news in an interview with German newspaper Bild, Autocar reported.

The budget brand is set to debut in 2018 and will initially launch an SUV, saloon and hatchback. All will be built in China and starting prices will range from 8,000 to 11,000 euros (RM33,325 to RM45,822). The cars will be sold in China, but India, South America, Eastern Europe, the Baltic region and Africa are all potential markets. There are no current plans for the brand in Western Europe.

The UK mag’s report says that the German giant has long struggled to meet its internal minimum standards for manufacturing while still meeting the budget constraints imposed by building a budget car to be profitable. Other examples of budget brands are Renault’s Dacia and Nissan’s Datsun, focusing on Europe and Asia/Russia respectively.

The new brand will be the VW Group’s 13th after Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda, Volkswagen, Ducati, MAN, Scania and Neoplan.