VW boss Martin Winterkorn announced the company will begin manufacturing a new super-budget vehicle in 2015.
“We are developing a budget car for the price range between €6000 and €7000. Some three million cars are sold in this segment each year in China alone,” said Winterkorn during an interview.
Winterkorn added that the development of this new car will not be the merit of VW alone. The super-budget car will have its base development carried out in Germany and then in China, with VW’s partner. The vehicle is to be produced in 2015. The only way to keep the car’s cost so low is to manufacture and partly engineer it in a low-cost market, with materials and parts sourced locally. Also to keep costs down VW will use existing technology.