BERLIN – Skoda plans to build a low-cost family sedan, CEO Reinhard Jung said. The car would compete with the successful Logan, which is produced by Renault's Dacia subsidiary.
Jung said the new model would cost between 10,000 and 12,000 euros and would launch in two to three years.
The CEO did not give any more details but German press reports have said the new car will be positioned between the Octavia compact and Fabia subcompact and would use components from both those models.
It would be more expensive and upscale than the Logan, which starts at 7,300 euros in Germany.
Jung said Skoda, the Czech unit of Volkswagen AG, wants to strengthen its product lineup to take advantage of increasing sales of low-cost cars.
Skoda has been positioning its cars more upscale in recent years but Jung said “it's our clear aim also to produce attractive new cars for entry-level buyers.”
He was speaking here at annual conference of Automobilwoche, a sister pubilcation of Automotive News Europe.
Jung said he expects Skoda sales to fall by between 40,000 and 50,000 units next year in Germany, its top market, due to the end of the country's scrapping subsidy that offered customers cash to trade in their old cars for newer models.
The Czech carmaker would also continue to be hit in 2010 by the economic crisis in key markets such as Romania and Ukraine, he said. But good sales in western European markets such as the UK, France and Italy would help balance slowing sales in central and wastern European, Jung said.