Volkswagen Conducting Feasibility Study for New Low-Cost Brand

Volkswagen is a brand with an ultra-large spread—from simple mobility, symbolized by the tiny, European-market Up, as well as the ancient, Chinese-market Jetta II and Santana (Quantum), up to the luxurious Phaeton and Touareg. But a new segment has been emerging below the positioning even of VW's cheapest offerings: Cars like the Tata Nano—which has aspirations to come Stateside—and the Dacia Logan provide basic mobility for thousands less than even the most meager of Volkswagens. What's more, VW has taken its formerly bargain-basement brands Škoda and SEAT upmarket so successfully that they cannot compete in the low-cost segment anymore without damaging their reputations. It's no wonder, then, that VW is strongly considering creating another truly low-cost brand. Comparison Test: 2013 Chevrolet Malibu Eco vs. 2012 Honda Accord EX-L, 2012 Hyundai Sonata SE, 2012 Kia Optima EX, 2012 Toyota Camry SE, 2012 Volkswagen Passat 2.5 SE Comparison Test: 2011 Volkswagen Touareg V6 TDI vs. 2011 Touareg Hybrid Long-Term Road Test Intro: 2012 Volkswagen Jetta GLI We hear from a top-level source that the company is conducting a feasibility study, which should be completed by the end of the year, on the prospects of a new low-cost badge. "The brand would have a new name and a new logo," we're told. Regional production at low cost is a key to these projects, should they come to fruition. Volkswagen is aiming for a product with a sticker price of between €6000 and €8000 (roughly a range of $7800 to $10,400). By contrast, the upcoming Jetta and Santana replacements, which share their platform with the SEAT Toledo and Škoda Rapid, will be sold from €8000. Read full story » from Car and Driver Blog http://blog.caranddriver.com

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