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]


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    • 1 Second Ago
  • 4 Comments
      John
      • 3 Years Ago
      According to Consumer Reports review of the new Jetta, saying the car lacks handling and agility, has a cheap interior and harsh sounding engine, one could argue that VW has already launched their entry level brand here in the US.
      Myself
      • 3 Years Ago
      VW had two budget brands in its portfolio - Seat and Skoda. As it happened, it pushed them upmarket, so much that VW headquarters last year forced Skoda to restrict standard equipment on their cars. Fabias lost xenon lamps, for example. Enter another budget brand....
      JamesJ
      • 3 Years Ago
      It didn't seem that long ago when VW was considered a cheap car. Who would have thought that the VW brand would one day be selling for $40K?
      tenspeeder
      • 3 Years Ago
      ChinaWagen. That was easy.