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| Logan's run well for Renault |
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As a China-watcher, I am constantly intrigued by Volkswagen’s attempts to retain a lion’s share of the burgeoning market in that culturally diverse country.
Volkswagen is an old hand at the China game: it began building Passats in the People’s Republic as long ago as 1983. In the meantime its joint ventures with SAIC and, more recently, FAW Car, have produced a string of models with familiar names.
Nonetheless, Volkswagen is by no means content and, inspired by Renault’s success with the cheap-as-chips Logan, intends to build its own low-cost equivalent. But although the car is intended for China it may not necessarily be built in China. Code named EM (Emerging Markets – don’t you just love the depth of German imagination), the new car is expected to utilize Skoda technology and components, and will be sophisticated enough to have 3-, 4- and 5-door variants.
Meanwhile, and with potential for a Czech mate, Skoda is to start up on its own account, building and selling the Octavia in China ‘early next year’, presumably with the same comparative price advantage VW allows it to enjoy in Europe.
So there’s to be another round in the cut-price war, and how far can that be taken before quality takes a nose-dive? But if the Chinese insist on driving something really cheap and nasty, maybe some bright young tiger should start building the Rover 25 – at least it would provide other manufacturers with an example of what to avoid.
