Volkswagen was rumored to be in the works with a new entry-level brand that could undercut its entire portfolio by offering super-affordable cars for developing countries.
However, interestingly enough, Volkswagen ran into cost issues, mainly balancing cost and quality. According to AutoCar, the Wolfsburg automaker is “struggling” to keep costs down while maintaining proper levels of quality and safety. This has been a huge challenge for the brand ever since the project began.
Despite the problems, it’s still “under consideration” and may be launched if everything gets sorted out. The brand would mainly appeal to developing markets in China, Russia, and India with models costing somewhere in the upper-four figure marks.