Volkswagen Group's new strategy for Skoda is beginning to show its first results. In order to avoid competition between VW and Skoda products and to get a piece of the low-cost market, the German company’s plans for the Czech automaker include a new affordable model.
According to reports from the UK, Skoda has confirmed that the new addition will be a small sedan positioned between the Fabia supermini and the Octavia and will target developing markets. The sedan, which could be a competitor to Renault’s Dacia Logan, is scheduled for launch in 2012, but first Skoda will introduce a city car based on Volkswagen’s forthcoming Up series.