Volkswagen is considered "Premium" in Australia? Wow... Don't know what to do with that.Automotive analogies need to be used with caution, especially where geographic variations are evident. North America is not the only market in the world.
For example, here in Australia Lexus is a successful brand but it built quite slowly in the 1990s. Honda never bothered with Acura for this market and is now regarded as a premium brand in its own right. Mazda's premium Eunos label was an expensive failure, but Mazda's own reputation has improved steadily and is close to being a premium brand now. Nissan have made a couple of unsuccessful attempts to establish Infiniti over the past decades. Meanwhile Volkswagen ('people's car'!) is undeniably now a premium brand. I'm not sure what lessons I could draw from all that to apply to watch branding.
Sorry, I had and have no intention to hijack the thread and don't expect a reply, it's just that, being and working in the automotive buisness with ties to Europe, Japan, US and China, I have some knowledge and that really surprises me how different the markets (thus people) must be or react.
...and now back to watches and movements