Volkswagen Group has finalized the basic concept and design of its upcoming budget brand models, supposed to be introduced in China in 2017. "The concept and design are now in place, we will produce all components in China" Hans Demant, responsible for the budget car project at VW, said during a press discussion at the Beijing auto show.
Volkswagen has been working on this new budget brand since last year that will spawn the budget models (to be priced between $8000 to $11000) initially for the Chinese market only. Infact, the company will assemble the new model and manufacture the components for new brand solely in China.
Last month, it emerged that the senior board members of the VW Group have almost agreed to authorize the development of new brand and are likely to make an official announcement around the month of July this year (Read here).
The Group has been struggling for more than a year to meet its internal costs budget to establish the new brand. The new development will incur huge investments and colossal planning to the company to meet the exponential growth in its business operations. Interestingly, VW Group has set the milestone of becoming world’s largest automaker by 2018 which seems possible only if company succeeds to capture the mass market with introduction of the new brand.