China May Get A Low Cost Volkswagen

A low-cost Volkswagen, selling for between 5,000 and 10,000 euros, might be earmarked for China, and the range could include – brace yourselves – a station wagon! Spurred by the prospect of having no competitor for Dacia and Datsun cars, VW is exploring their options. Reuters claims that a small sedan, a van and a wagon are under consideration. While VW is a big player in China, it lacks a presence in India and Southeast Asia, two booming markets where a low-cost car is important. The up! is positioned as a more premium option in the small car space, and would be unsuitable for the task. A few concerns lay ahead for VW; first, would it keep the VW badge? In world markets, this isn't such a big deal, but in Europe, where Skoda and SEAT ostensibly play for a share of the lower-end market (though not the bare-bones low cost segment) some cannibalization could occur. Second, how would VW develop it on the cheap? Reports indicate that existing technology would be used, but it's hard to fathom that anything other than old platforms and engines would enable VW to do it profitably. from The Truth About Cars http://www.thetruthaboutcars.com

Put the internet to work for you. via Personal Recipe 680102