Actually, everybody and their grandma wants to be near lux. I recently read the interview with the German head of SEAT (no other way to reverse the old "German passion, Spanish engineering" adage then send a German to run SEAT), and he is totally mentally lost as to what he manages. Previously, he was head of freaking procurement!
The result is a totally lost brand making KIA lookalikes with pig noses, plasticky interiors, costing the same as VWs, powered by 1.2 engines and posing as "sporty". Nobody cares, and it seems even VW doesn't.
They could at least bow down and say that even if VW is now "upmarket", Skoda is "upmarket" than at least SEAT is the Volkswagen of today and give them the Fox and Gol.