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NEWS
Chinese people's car
Volkswagen locks in all-new sub-branded micro-car for emerging markets starting with ChinaVolkswagen is reported to have signed off the first in a new family of budget models that will form its 13th brand and play a key role in the German giant's target to replace Toyota as the world's biggest car-maker by 2018.
According to Reuters, although neither the make nor model names have yet been announced, Volkswagen has locked in the brand concept and design of the all-new micro-car.
"The concept and design are now in place," Hans Demant, the manager of VW's so-called budget car project, told Reuters on the eve of last week's Beijing motor show.
However, while the original Volkswagen (which is German for 'people's car') was Europe's answer to Ford's Model T and is now reprised by the trendy new Beetle, VW's next bargain-basement folk's wagon will be aimed directly at the world's most populous nation.
"We will produce all components in China" said Demant, in a clear confirmation the cheap and cheerful model will be built in and aimed directly at the world's largest car market.
The statement also indicates Volkswagen has met its low cost targets with the new no-frills vehicle, which will reportedly be priced between 6000 and 8000 euros ($A8995-$11,995) when it goes on sale in China by 2016 or 2017.
Like Nissan's Dacia and born-again Datsun brands, VW's new sub-brand – which should be produced in a Chinese joint-venture with either SAIC or FAW – could also eventually be sold in emerging markets including India, Africa, Latin America, Russia and Eastern Europe.
However, it's unlikely ever to be introduced in Australia, where Volkswagen's cheapest model – the $13,990-plus up! (pictured) – has just been axed due to lack of demand.
Apart from its parent company's plans for global sales domination within five years, the Volkswagen brand hopes to be a top-five player in Australia after Ford, Holden and Toyota cease local manufacturing by 2017 – not including the sales of sister brands like Skoda, Audi, Bentley, Porsche and Lamborghini.
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Written byMarton Pettendy
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