Monday, 16 November 2009

Skoda set to offer budget sedan

Skoda will launch a new budget saloon in 2012, designed to take on Dacia.

Budget brand Dacia has seen strong sales growth under European scrappage schemes and the Volkswagen Group is keen to cover the gap between Skoda and Dacia as part of its ‘alignment’ strategy.

The new car will directly replace the original Octavia, which is still sold in some emerging markets including the UK – strictly as taxis. It will be similar in size to the original Octavia, making it smaller than the current Octavia.

Skoda’s CEO, Reinhard Jung said the model would be sold in parts of Western Europe in order to bridge the gap between the current Fabia and Octavia, which he described as “too big.”

No decision has been taken on whether the model will be sold in the UK.

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