VW rethinks Skoda and Seat strategy in mass market struggle

A sign with the Volkswagen logo stands in front of a VW car dealer in Hanover, Germany, Feb 20, 2014. Two of Volkswagen's three volume brands continue to give it headache, with Czech division Skoda trailing ambitious sales targets and Spanish carmaker Seat battling a decade of losses - EPA Photo.

GENEVA: If Volkswagen wants to beat Toyota to the global autos throne, it can't afford to take its foot off the gas in mass-market cars. Yet two of its three volume brands continue to cause headaches, with Czech division Skoda trailing ambitious sales targets and Spanish carmaker Seat battling a decade of losses.

Lower down the chain, VW is also struggling to hit cost goals for its planned budget car for emerging markets, a VW executive told Reuters on Tuesday.