Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

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    patpending

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    Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by patpending on Sat Jan 19, 2013 1:18 pm

    This story was in auto, motor + sport dated 13/12/2012.

    Editor Bernd Ostmann mentions that Renault's strategy with value brand Dacia has been very successful. Dacia is selling 800,000 cars a year at a margin of 6-11%. Consultants IHS Automotive predict the value sector will have grown from the current 8m vehicles a year to 10m by 2017.

    Vying for sales in the value sector are Dacia, GM (Chevrolet), Suzuki, Nissan, Hyundai and Kia. [Note: not Škoda who now count as too up-market, but surely MG belong here as a brand returning after a long absence].

    NEW VOLKSWAGEN GROUP VALUE BRAND

    These are competition for VW who have tasked executive Hans Demant (evidently ex-CEO of Opel 2004-2010! http://de.wikipedia.org/wiki/Hans_Demant) and a 20-strong team with creating a car to sell for €7500-€8000 (say £6500) when the China-spec Jetta is €9200 (say £7700).

    In January the project will get the go-ahead. Or not: it is not risk-free. VW cars are becoming filled with more and more gadgets and going ever further up-market - what can be left out, what corners can be cut?

    Areas to be considered:

    1) Lower wage costs: Germany €30.10/hr, Romania €4.50/hr.

    2) Simpler production: Body must be ready-pressed in three steps only. The floorpan should be made of three parts then welded together "by hand", not a single complex part. Old machine tools should be used (low depreciation); and drivetrains should deliver low emissions and good economy rather than performance [MG has set "performance" higher in its criteria, hence "highish" CO2 band for MG6 petrol]

    3) Engines can come from FAW.

    The project will begin as a JV with FAW in China. If it is successful, Volkswagen will replicate it in other countries under its own auspices.

    Models:
    1) (decision January 2013) Saloon.
    2) Estate or Sportback.
    3) Shorter model. (Demant "For China we need a big saloon, but for India something a little smaller")

    4) and 5) (later) SUV and people carrier.

    Planned sales of 500,000 a year between all models. First car launched in 2015 (subject to go-ahead).

    DACIA PLANS FOOTNOTE

    Dacia plans 1m units production by 2015: a new factory (capacity 400,000) is to open in Tangiers, Morocco. Smaller cars may also be made to sell in the €3,000-€4,500 (say £2,500-£3,500) range in India where the Maruti (Suzuki) Alto and the Hyundai Eon have been very successful.

    2015 will be a crowded year!


    Last edited by patpending on Wed Apr 16, 2014 1:40 pm; edited 2 times in total
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    Windy
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    Re: Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by Windy on Sat Jan 19, 2013 3:32 pm

    patpending wrote:but surely MG belong here as a brand returning after a long absence]...
    If you want low CO2 from MG/Roewe, do it properly - the E50 Wink
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    Re: Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by patpending on Wed Apr 16, 2014 1:38 pm

    Note that now SAIC is apparently a possible...

    VW Cheap car almost reached the price limit of 7,500 euros

    The development of the VW-low-cost car is close to a breakthrough: According to the VW manager Hans Demant, who heads the project "Budget Car", the cost savings are so advanced that you just a few hundred euros from the target price of 7,500 euros be.

    "I am convinced that we can," Demant told Auto Motor und Sport . Demant announced that there will be variations rapidly from the subcompact sedan. "For less than 500,000 cars per year that pays not," Demant said. So it is loud Demant shortly after the appearance of the small car a hatchback variant, enter an SUV and a van. The sedan is the end of 2016, coming early 2017 in China on the market and will shortly be introduced later in the ASEAN countries Malaysia, Thailand, Indonesia and Vietnam.

    Budget Car not for the world market

    However, there would be no way the budget car world. "Global Budget Car does not exist", so Demant. "The Chinese want a big trunk, the Indians would rather drive small cars." Therefore, the car will not be exported to India.

    To achieve the cost target, had to lower the cost of production by 30 percent Demant workgroup. That's why the car is not in a modern VW assembled production facility, but in an older or even vacant factory in China. In addition, the assembly of the car is greatly simplified. Thus, the outer skin of the small car in just three press trains is completed. The underbody is also very inexpensive and is welded together from three parts by hand. The platform is the old PQ 35 of the Skoda Rapid.

    Even the normal Volkswagen distribution is too expensive. So Demant thinks of a new system with dealers in smaller towns, where the VW Group brands are not as well represented.

    http://www.auto-motor-und-sport.de/news/vw-billigauto-preisgrenze-von-7500-euro-fast-erreicht-8225724.html


    This is not easy for the VW group that sees itself as a manufacturer of premium cars. The leadership believes that a too simple features or quality would damage the Group's reputation. That's why VW wants to create his own brand, which is expected to be introduced in the Chinese market in 2017. In other regions such as India and Latin America, the low-cost cars would come out with a new brand and adapted to the needs of the clientele. Chinese people love big cars with soft seats, which is not so important Indians.

    In China are to complex conversations for VW. There, foreign manufacturers are allowed to build only with local companies together cars. VW is working with the Chinese suppliers SAIC and FAW. With one of the two groups, VW is expected to build the cheap car. However, both partners are already using our own vehicles in this segment go. SAIC about offers with GM and the Chinese manufacturer Wuling to an entry-level model for the Chinese mass market. Any other brand would be because additional competition.

    http://www.auto-motor-und-sport.de/news/billigautos-bis-um-7-000-euro-geiz-ist-geil-8201844.html
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    Re: Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by patpending on Thu Jun 26, 2014 12:39 pm

    Seems to be going ahead:

    http://www.auto-motor-und-sport.de/news/biligautos-fuer-schwellenlaender-neue-einstiegsmodelle-der-hersteller-8388713.html


    New entry-level models of the manufacturer
    With inexpensive produced small and compact cars VW & Co. markets such as China and India want to conquer - and possibly later also compete in Europe. We present the main concepts of the coming entry-level models.
    The motivation is clear: it is nothing less than the title of "Biggest automaker in the world." One has in the VW to reach headquarters in Wolfsburg for some time in his sights and is as up to date third behind Toyota and General Motors on the right track this goal. However, currently, have the Lower Saxony is still a problem: Although they are well positioned in North and South America as well as in the booming China with its own factories and joint-venture companies, there is for them still large white spots on the world map of car markets: "The key to success is for VW not only in China but also in Southeast Asia, the Middle East and Africa, where the company currently has a limited presence, "said Henner Lehne from the market research firm IHS.

    Tata Nano could never meet expectations
    These regions are united by the need for simple, robust and above all inexpensive models, that is the entry in the individual mobility there. A segment not currently represented in the VW is. Brand connoisseurs will argue that the Brazilian bestseller "Gol," a just 3.90 meters long compact car, this corresponds actually needs. But even the popular South American model has a retail price of around 10,400 euros converted to expensive for emerging markets in the Middle and Far East, especially the export would cost burden on in addition. Finally, in the Group are ambitious return targets that must be met by entry-level models.
    This keeps the Wolfsburg but not stop them from promoting the development of a suitable type with emphasis. For analysts and business owners are in this case agree: Cheap and globally marketable entry-level cars are an indispensable component in the portfolio of automotive global player. "In order to sustain the number one to be on the world market, VW must have an entry-level model represented his" affirms back.
    At VW, therefore, a team headed by the former Opel chief Hans Demant to the challenging task initially be established for the Chinese market a model that is both internal cost targets as well as the local requirements for size, comfort and safety. No easy task, says back: "The more intense to deal the Chinese consumers with the subject car, the more Western-style models are in demand."
    Say: Because of the fierce competition in the entry-level segment, a China-VW must issue in the design and appearance of the local competition. The goal: a car from the format of a Jetta with ABS, airbags and air conditioning for the price of 7,000 euros. When many people think of low-cost car at the 2009 launched Tata Nano , which had been presented with much fanfare, but was never able to fulfill the expectations placed in him.
    Tata Motors wanted from his 3.10 meters short base model Nano (38 hp, price currently from 2,350 euros) originally sell a million copies per year.This goal was just as wrong as the rapid export to Europe . Despite its low price and in spite of components from renowned suppliers, the 660 kilo lightweight four-seater could not prevail in his native India - too heavy weighs obviously the waiver of any safety and comfort extras.
    Dacia with a successful strategy
    A positive example, however, is the development of entry-level brand Dacia Renault-Nissan Alliance. There you have managed to establish a model family in the lower budget range, which celebrates successes not only in developing markets. Thanks to the intelligent use of existing technology components, cheaper manufacturing in low-wage countries and a clever model policy, the brand is constantly on the rise and reached last year with 430,000 sales, 16.3 percent of the total sales of the Renault Group."The Dacia principle is successful because the models based on simple, existing technology without costly adaptations for both emerging as well as developed markets are," Henner Lehne comments on the success of the brand.
    There, developers and cost calculator breed currently has a very small cars as a sixth series. Although the French management had last year ruled out such a model, now growing evidence that the project has not yet been discarded. According to unconfirmed reports, a future Mini-Dacia could be based on the currently expiring Twingo II. Instead of continuing to offer as parallel to succeed an old model Clio, it would in this case passed on to the sister brand that produces it with slight visual changes and a reduced number of variants on. Target here: A base price, which would have to be significantly better than that of a Dacia Sandero (from 6,890 euros).
    Another way is Ford at his entry-level model. Thanks to an agreement withFiat , the current Ka goes so far as a close relative of the Fiat 500, together with this in Polish Tychy from the tape. This will change with the successor but. The next generation of Ka comes on a Ford's own platform (B2E) as a four-door. Unlike the competition, the company does not use any components already adjusted models, but the current technology of Fiesta, B-Max and Ecosport. In addition, the Ka for Europe should be available with modern infotainment options and Ecoboost three cylinders.Nevertheless, he should continue to cost well under 10,000 euros - the current model is currently to be had from 8,000 euros.
    What happens next when current affiliations Fiat / Chrysler in this segment, is still unclear. The Italian-based company, the future has its headquarters in London, currently plays in the running for the crown of "Greatest Car manufacturer" does not matter, but could be a worldwide marketable entry-level model good use. Assuming that the successor of Panda and 500 rose somewhat in size, there would be room in 2018 below it for a new entry-level car. Name suggestion: Topolino.

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    Re: Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by Magnette on Fri Jun 27, 2014 3:35 am

    With SAIC or FAW?
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    Re: Volkswagen Group plans new "VWalue" brand with FAW - or SAIC?

    Post by patpending on Fri Jun 27, 2014 1:47 pm

    Magnette wrote:With SAIC or FAW?

    No mention. Looks like focus is moving from China to India and SE Asia and China might not be so involved.

    Still no idea what the cheap brand might be called. They have the other three Audi rings Horch, DKW and Wanderer (which was a big car brand) - together Auto Union - and NSU (which tends to mean something else nowadays though I recently learnt that all the modern FWD VWs and Audis are based on NSU concepts)

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