The BaoJun sub brand from SAIC-GM is the target for FAW-VW’s new sub brand according to Chinese media reports. The Joint Venture are now planning their own low cost brand to take on the lower end of the market using FAW’s low cost R&D capacity mixed with VW’s supply chain management expertise.
Chinese media are citing inside sources within FAW-VW who claim that the joint venture will launch a new sub brand within the next three years and will see a launch before the end of 2015. The new brand will be aimed at the lower end of the market as a low cost alternative to VW’s current range which starts at 82,800RMB for the New Jetta. VW’s CEO Martin Winterkorn previously announced that the company is planning to make ever cheaper cars with a future model priced between 6,000 and 7,000 Euro.
Previously FAW-VW’s vice president did reveal information on the JV’s plans for a new sub brand which were followed by leaked images of what the cars may look like.