Volkswagen may be considering the creation of a new brand for China. According to Automotive News, the German Automaker is currently looking into the creation of a domestic brand aimed squarely at the budget buyers of the People's Republic. VW officials said that it is currently in discussions with its Chinese partner, First Auto, about whether the move would help VW retain its hold on the market, and it would put Volkswagen in good company. AN reports that automakers like Honda and Nissan have crafted similar brands in the past.
The Chinese government wants foreign automakers to build domestic brands in order to share technology and expertise with their partners while most automakers simply want to sink their teeth deeper into one of the quickest-growing markets on the planet. Volkswagen says that despite being leading automaker in China at the moment, it's still not effectively competing in 20 percent of the market. That segment is made up entirely of inexpensive vehicles.

Tapping those lower-rung car buyers could go a long way toward helping the automaker reach its goal of becoming the world's largest by 2018.

[Source: Automotive News]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Honda Civic
    MSRP: $18,290 - $26,740
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    Share This Photo X