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Volkswagen may unveil a low cost car in Frankfurt
By Yoann Besnard on 24 July 2007 | 
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According to the Germancarblog website, Volkswagen will unveil a low cost car at the next Frankfurt Motor Show in September. Due to be sold in 2009, the car will have a price of less than £5,300/€8,000/$11,000. The car will be sold first under the VW badge and then under the Skoda and Seat badges. The Volkswagen variant will feature improved equipment, including air conditioning and a CD player. It will retain the carmaker's typical look and feel, which customers have come to expect.
It is well known that Volkswagen is working on a low cost car. The project started at the Skoda offices in February 2005. Originally the launch target was in the first trimester of 2006. However, this low cost car brings with it question. Beyond the technical questions, the main area of uncertainty is the impact on the Volkswagen's brand image. How do you sell a Phaeton at the top of the range when you sell a low cost car as an entry-model. The Logan saloon may serve as a lesson for the German carmaker: it is sold under the Dacia brand on Western markets in order to avoid damaging Renault's brand image. Conversely, the Logan is sold under the Renault badge in emerging countries thanks to its good brand image on those markets.
