It was earlier speculated that Volkswagen’s may come up with some low cost car brand to counter with the rivals like Nissan-Datsun’s budget cars. While Nissan-Datsun may be revealing its cars by 2014, it has now become quite evident that Volkswagen will not be coming up with its budget car before 2016. The news has come straight from the mouth of Ulrich Hackenberg, Volkswagen’s R&D chief.
The news will surely be a relief for the Nissan-Datsun as it will allow them to gain the advantage of first move, but this will also require Volkswagen to come up with a new strategy that could enable them to produce low cost cars by reducing production cost.
Skoda was earlier known to have the budgets cars of the VW group but gradually it climbed the ladder and currently cost just about the Volkswagen vehicles. The good news it VW is quite concerned about its budget brand and is working hard to come up with low cost models.