VW may discard low-cost brand

VW may discard low-cost brand

Volkswagen is considering dropping the plans to launch a low-cost brand in emerging markets, as previously forecast. According to Autocar website, the German company was having trouble balancing the quality of new vehicles with reduced prices.

Unable to reach the standards of quality and safety advocated by itself, VW would fear that the new brand would harm the image of the group in more mature markets such as Europe and the United States.

The possibility, however, is still not entirely cleared. Remember that, according to the original plans, the new brand would reach markets like China, India and Russia, with models whose initial price would be equivalent to 7000 euros.

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