As the manufacturer of the original “Peoples’ Car”, Volkswagen has grown to become a high-end manufacturer with premium pricing. But if all goes to plan, that may not be the case for much longer.

As the manufacturer of the original “Peoples’ Car”, Volkswagen has grown to become a high-end manufacturer with premium pricing. But if all goes to plan, that may not be the case for much longer.

High-volume models, such the Golf, Polo and Passat, will be the focus of revised pricing strategies that will make them more competitive with rivals from Asia and France in particular. These models will no longer be among the highest priced models in their respective segments, reported.

One source in the Wolfsburg-based company said: “Volkswagen won’t position itself at the high end of each segment any more.”

In the 90s, chief executive Ferdinand Piech initiated the company’s premium pricing policy, but the brand has since lost some market share to French, Japanese and Korean brands.

"Volkswagen used to have pricing power,” an industry analyst said. “But with increased competition from rival brands that have improved perceived quality, VW's price strategy is under pressure. Because of that, Volkswagen may not be able to benefit from increased volume."

The new Golf has many parts and systems that are more costly than its rivals' and may experience trouble keeping its price competitive.

While several industry analysts have welcomed the announcement, many are also wary about the impact the change will have on manufacturers that Volkswagen shares its technology and basic designs with.