Volkswagen Possibily Delaying Luxury SUVs but Launching Budget Brand

Falling European auto sales have left German automakers, especially VolkswagenVolkswagenGermany, 1938 > present98 models
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, mostly unaffected in terms of sales, but it appears to be having a significant effect on Volkswagen's strategy for the future. According to Automotive News, Volkswagen will decide in November whether to go ahead with plans with for LamborghiniLamborghiniItaly, 1963 > present32 models
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and BentleyBentleyUnited Kingdom, 1919 > present37 models
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SUVs. Volkswagen is also considering creating a budget brand similar to Renault's Dacia or Nissan's upcoming Datsun. 

While Volkswagen is not facing a crisis at the moment, it wants to save money for the future. Therefore, it might cancel plans to build Lamborghini and Bentley SUVs. The VW Group Supervisory Board meets on November 23 and will likely decide on the models' future at the time. 

"In this environment, we need to have a considerable amount of liquidity available. It's normal that one looks for items that aren't imperative," said VW Group Finance Chief Hans Dieter Poetsch at the Paris Motor Show. 

The rumor about Volkswagen's budget brand comes from German magazine Der Spiegel. However, like Datsun, the new brand would likely not be offered worldwide. It would probably be limited to the Asian, Indian, African and Eastern European markets. One possibility is that Volkswagen will begin selling its previously Chinese-only cars in these markets. 

“The idea of a low cost brand has been on the agenda at Volkswagen for some time,” Felber said, adding, “A decision has not yet been made," VW spokesman Eric Felber.

Source: Autocar and Automotive News Europe