Volkswagen was planning to make Jetta a standalone brand in the world’s largest market. At
the time, VW representatives dismissed the reports as “pure speculations.” Those reports were quite accurate except the timing of the
disclosure probably didn’t suit Volkswagen’s plans. Today the German
automaker officially announced the launch of the Jetta brand in China for the
third quarter of this year.
Targeting young
buyers from large cities where vehicle ownership levels are still very low, the
Jetta marque will kick off with one sedan and two SUVs, all of which will be
produced by FAW-Volkswagen in Chengdu.
VW says the new
brand will allow it to exploit its market potential in China more effectively.
“With Jetta, we are closing the gap between the established VW lead brand in
the top volume segment and entry-level mobility, which accounts for about
one-third of the Chinese market and is served mainly by local brands. This way,
we will significantly increase our market coverage,” explains Jürgen Stackmann,
Member of the Volkswagen brand Board of Management responsible for Sales.
While VW’s press
release doesn’t use the words “budget” or “low-cost,” it says the Jetta brand
will allow the Volkswagen core brand to position itself even more clearly as
“top of volume” with its vehicles. Developed together with FAW-Volkswagen,
Jetta-branded cars will be specially tailored to the needs of the Chinese
market and will help VW forge ahead “with the further regionalization of the
market.”
No details were
offered about the Jetta lineup but the photos show the sedan and one of the
SUVs. While the sedan is clearly a rebadged version of the VW Jetta currently
sold in China, the SUV vaguely resembles the SEAT Ateca — the SEAT brand is not
sold officially in China. If the reports from earlier this month were totally
accurate, the second SUV would have to be based on the SEAT Tarraco.
Volkswagen says the
Jetta brand will adopt new sales approaches. It will have its own traditional
dealership network but it will approach customers directly courtesy of digital
showrooms, shopping malls, and mobile sales trucks. VW estimates about 200
Jetta showrooms will exist by the end of the year.
