If there's a certainty in this crazy world economy, it's predicting quick change in the automotive industry.
As consumers in industrialized countries ponder the merits of plug-in electric vs. all-electric cars and trucks -- or consider new-tech, high-mileage vehicles that seek to get the most out of traditional gasoline internal combustion or diesel engines and drivetrains -- a majority of motorists in developing countries are just getting around to buying an entry-level car.
German media reported last week Volkswagen is the latest major global automaker considering a sub-brand to sell in emerging markets like Brazil, Russia, India and China. We're talking about vehicles that would sell for $6,500 to $13,000 -- about a third of the cost of an average new vehicle in the United States.
The idea is not new.
Japan's Nissan said the Datsun brand would only be sold in emerging markets when it announced plans to revive the nameplate earlier this year. Renault sells the low-cost Romanian-made Dacia in similar markets.
The key is keeping costs low for both manufacturers and consumers.
With some European brands like Fiat, Renault, Opel and Peugeot languishing, and overall car sales on the continent expected to drop to less than 12 million units this year compared with nearly 16 million new vehicles sold annually just a few years ago, a cheaper sub-brand offers hope to car makers that have the wherewithal to create one.
As consumers in industrialized countries ponder the merits of plug-in electric vs. all-electric cars and trucks -- or consider new-tech, high-mileage vehicles that seek to get the most out of traditional gasoline internal combustion or diesel engines and drivetrains -- a majority of motorists in developing countries are just getting around to buying an entry-level car.
German media reported last week Volkswagen is the latest major global automaker considering a sub-brand to sell in emerging markets like Brazil, Russia, India and China. We're talking about vehicles that would sell for $6,500 to $13,000 -- about a third of the cost of an average new vehicle in the United States.
The idea is not new.
Japan's Nissan said the Datsun brand would only be sold in emerging markets when it announced plans to revive the nameplate earlier this year. Renault sells the low-cost Romanian-made Dacia in similar markets.
The key is keeping costs low for both manufacturers and consumers.
With some European brands like Fiat, Renault, Opel and Peugeot languishing, and overall car sales on the continent expected to drop to less than 12 million units this year compared with nearly 16 million new vehicles sold annually just a few years ago, a cheaper sub-brand offers hope to car makers that have the wherewithal to create one.
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