With the Western world most affected by stagnation and recession, it's no wonder that the global car giants are shifting their focus to the emerging world and providing them with the affordable cars that these markets require.
Problem is, bolting together a cheapie on four wheels requires compromise, meaning something of a downgrade when it comes to things like image and style, features, overall refinement and even safety.
Hence there's a serious risk that launching a cheapie can do damage to the image of an established car brand. That's why Renault sells its cheapest products under the Dacia name in many markets (South Africa an exception) and Nissan is reviving its Datsun brand to introduce cheaper products to emerging markets.
Now Volkswagen is said to be jumping on the cheap car bandwagon and not wanting to tarnish its premium image, the car giant is reportedly planning to create a separate entry-level brand.
In an interview with Auto Motor und Sport magazine, Volkswagen's R&D head, Ulrich Hackenberg, admitted that creating a cheap vehicle is a huge challenge and so much would need to be taken out of the vehicle to make it affordable that the company would not be prepared to sell it under the Volkswagen nameplate.
While information is still sketchy at present, VW reportedly wants to build a sedan that will cost just 5000 euro (R50 800).
Ironic, then, that the name Volkswagen actually means 'peoples' car'.