harrytuttle
But aren't the sales of the "lesser" brands higher than the premium brands? And if that's so, assuming the cars cost just about the same to produce (pretty much identical hardware, assembled to similar degrees of quality), isn't the profit loss ridiculous on the SEAT & Skoda lineups? This is what gets me. Why undercut yourself with not just one, but three other competitors?
Its all about the materials that are being used by the manufacturers.
Skoda is the budget VAG car, and comes with the bare minimum specs, although it does include such things as A/C electric windows etc. Its focus is to be a reliable and comfortable tourer with good MPG that is easy to drive. The cabins could be considered as bare.
Price ranges from £11,000 to £18,000. The car is the best in its class easily. The 200hp VRS costs £17,000, and is only availabe with four doors.
Right now prices range from £11,000 to £18,000, but once the range topper cupra arrives that coule be bumped up to £20,000.
This car competes doesnt compete with the skoda directly (the skoda is passat sized, the leon more jetta/golf sized), but is designed for people who prefer something sportier looking and to drive than the skoda models, as the skoda badge isnt for everyone, but more so for older people who dont care too much about image. So this car is aimed at youngsters, who are about to start, or have young families.
The skoda fabia competes directly with the seat ibiza, but like before and as the ibiza's name would suggest, the ibiza is aimed at the youngster, whilst the fabia at 35+ crowd.
The fabia and ibiza both at £7,500, whilst the skoda stops at £12,000 and the ibiza at £15,000.
Now for VW. The passat, which is more upscale to the octavia starts at £15k and finishes at £25k. The thing about the VW passat is that its quite a bit bigger, so if you have the money for it theres no reason why you should go for the octavia, unless it ticks all your boxes perfectly.
The golf and jetta compete with the seat leon. The VW's however are the classier options, whilst the seats could be considered the cheap sporting option. Price figures overlap throughout the range, but there are enough differences between models, giving people a wide VAG range and hence taking sales from the likes of vauxhall and ford.
Like take BMW. Wouldnt it be nice if they made cheaper cars that were similiar to the 3er and 1er. BMW itself would lose a couple sales, but gain a whole lot more. It works for the likes of toyota and lexus, except VAG has made sure to fill the voids between the top line and bottom line fully, unlike that of toyota and lexus, where there is a big gap in the quality of vehicle.