Volkswagen plans to make Skoda a competitor to low-cost Hyundai and KiaSeptember 30, 2019
Volkswagen Group Corporation is going to differentiate among the brands of the concern. It is assumed that Seat cars will be more emotionally oriented, and Skoda will move to the segment of low-cost cars Hyundai and Kia.
The German concern plans to clearly position cars of each brand. The Seat with Cupra must play on the emotional feelings and passions of the client. Skoda cars will be oriented to the East European market.
According to Automotive News, head of VW Group’s automotive strategy, Michael Jost said: “The Skoda brand has been able to sell more efficiently, meeting the needs of Eastern European consumers, pushing for functionality more intensively than it does now.”
In addition, it turned out that the new positioning could affect the pricing policy of the corporation. According to assumptions, the cost of Seat cars may increase. Skoda is likely to abandon some of the premium options in new cars, which will make it possible to compete with Dacia, Hyundai and Kia in Eastern European car markets.
Also, according to Michael Jost, the corporation will regulate the offer of the brand of the group so as to prevent intersection.
In addition, it recently became known that Toyota and Subaru can expand the partnership and agreed to mutually buy small blocks of shares.
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