Volkswagen working on budget product for Chinese market

Sunday, December 25th, 2016 - autos, cars, motoring, news

Source : Volkswagen working on budget product for Chinese market

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Engineering work will be under way on a cost-effective platform to use in a budget saloon as well as SUV for China

Volkswagen’s long-running budget car project has taken a brand new turn, Autocar can reveal.

The latest project will be to engineer a brand new, inexpensive components set in which will underpin both a saloon as well as an SUV, with the two products “sharing as many common parts as possible”.

There are no more details because the engineering work will be still under way, although if the project makes production the cars will only be sold in China. Previous work at VW on a budget car for China seems to have been put on ice. Said to be a contentious issue inside the company, the ealier budget project initially failed to meet rigorous cost targets.

in which also fell foul of executives who felt in which such a basic vehicle might not be worthy of the VW badge. Outside of the Chinese market, VW will not be competing on cost, say sources, because the brand will be centered on being the premium choice among mass-car makers.

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