Fin24

VW eyes R55 000 budget car

2012-10-04 13:35

Frankfurt - Europe's biggest carmaker, Volkswagen, said on Thursday it was considering selling "budget cars" for as little as R55 000 (€5 000) in emerging markets "within two years".

"We need a cheap car for the emerging markets ... that would cost between €5 000 and €10 000," the head of the works council representing the firm's employees, Bernd Osterloh, told the business daily Handelsblatt.

He added he could imagine "such a model being ready in two years."

The firm should "attack new markets like South-East Asia or Africa more aggressively," he stressed.

He said that in big markets like India and China, the firm might be able to offer a range of low-cost vehicles along the lines of the "VW Up", a small, reasonably priced hatchback.

"We do not need to reinvent the wheel for this," he said, stressing that parts from other cars could be used to construct the new range.

"Whether we would market this as a VW, we will have to see," added Osterloh.

Handelsblatt reported that an expert group would present to the VW board by the end of the year a scheme to enter the low-cost car market, one of the few segments of the automobile industry in which the manufacturer is not active.


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Comments
  • squeegee.pilot - 2012-10-04 14:24

    "Between 5000 and 10000" will end up being 10000; meaning R140 000.

      Grant Wykerd - 2012-10-04 15:20

      Unsure how a 2yr away projection is even considered newsworthy or am I being cynical? i must however disagree with you, not in a bad way, and say that in 2yrs time, the currency conversion alone for €5K will be R140K... LOL

      greg.quinn.353 - 2012-10-05 09:12

      Double that price and that's about what it will cost in SA!

      stirrer.stirrer - 2012-10-05 13:05

      R55000 is the entry level model without seats or paint and only half an engine.

  • gerry.couchman.9 - 2012-10-04 15:38

    This sounds like a VOLKSWAGEN! Isn't this how they started?

  • makarapakaplan - 2012-10-04 15:57

    Neva in a million years will you get a car here for a good price like in the states, the robbing us blind , entry level here starts at 120k, entry se foet

      trevor.leon.5 - 2012-10-04 16:09

      umm,you can get a chery qq3 with a/c and p/steering for R79900! where you come with120K? AND THE SPARK CAMPUS IS UNDER A 100 K. read before you write!

      raath - 2012-10-05 06:40

      He meant a PROPER entry level car. Not a toy.

      khethu.ndlovu.3 - 2012-10-05 07:51

      Kaplan is from india, just landed here, the 1st car he saw was priced @R120 000; he then thought that was our entry level.

      khethu.ndlovu.3 - 2012-10-05 07:53

      If you want a proper car, there are plenty here, oh! And the price will be proper.

      robqb - 2012-10-05 17:21

      @trevor.leon.5.. 3 years(+-) ago, just before retiring, I looked at, and test drove the qq3. Well I'll ask you the same question I asked the salesman. Why did they throw the cherry away and keep the tin it was supplied in?

  • david.bapela.50 - 2012-10-04 16:43

    mr OSTERIOH ate baked beans before media briefing,that is a gas = R55K??????????no ways

  • hamish.drake1 - 2012-10-04 18:02

    With VW it will be a Citi Golf deathtrap

      raath - 2012-10-05 06:41

      It won't be, because it must pass Euro NCAP testing to be sold in Europe.

  • dewaldmontgomery - 2012-10-04 18:07

    Add to that import tax, VAT, carbon tax and - oh, I forgot - the greedy, fat, corrupt ANC cronies, and we're looking at R100000 +.

      raath - 2012-10-05 06:42

      Which, in 2 years' time would be the average price of entry level cars...

      raath - 2012-10-05 06:43

      Still a ripoff though... we get abused with the import duties

  • Vince.York - 2012-10-04 18:10

    Great news! BEE & AA escalation can quickly gear the markup by 1800% to match Nkandla feeding troughs here in good ol' SA.

      robqb - 2012-10-05 17:24

      @raath. We don't get abused with import duties, we just get abused!

  • terrence.naicker.1 - 2012-10-05 07:29

    Damn you VW. How dare you attempt to make a budget entry level car. They should have announced they were going to make an overpriced top-end luxury sedan. Maybe that would have appeased the morons that post on here.

  • mark.singh.9889 - 2012-10-05 08:05

    By the time it gets to our market it will cost R155k. And it will still be a junk

  • gary.bloom.967 - 2012-10-05 08:38

    I still flatly refuse to buy a new car.........get a low km model with a service plan where the original owner already took the knock.

      ivan.wheatley - 2013-01-04 12:50

      I bought a secondhand 2-year-old French car with every extra that a Merc has and a balance of a 5-Year Maintenance Plan six years ago at LESS than our current Entry-level prices. It has cost me virtually nothing to Service and I have done over 100,000 kms in absolute Safety (6 Airbags) and Absolute Comfort! But everyone told me never to buy a French car!

  • Carl.Wasmuth - 2012-10-05 09:57

    Its just another smoke screen. A few years back we were promised a luxury but cheep small sedan. When it came out it was R50 000 more than they initially said. Put your money where your mouth is VW. Make the car and the loyal will buy.

  • rurapenthe - 2012-10-05 10:52

    R55 000 for the car, and then R150 000 once the taxes, fees, levies, mark-up, carbon offset, customs etc has been added...

  • hsnam - 2012-10-05 16:29

    Cars in Africa are way overpriced for what we get. European models come with far more extras and are much cheaper. In Namibia we get a lot of imported cars from Europe and Asia that are the same as local models, just cheaper, but they are of course deemed "imports" and shot down by local dealers who refuse to work on these cars, but gladly sell you spare parts. Even banks and insurers are in on the game, try and finance an import model, they only give you 36 months to pay off the car and want a 30% deposit. And insurers sometimes also charge higher premiums.

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