According to German media reports, according to the established plan, the public board of supervisors will soon vote on its cheap car program (that is, launching a low-priced brand in emerging markets such as Asia South America). Public director Hans Demant disclosed some details of this project in an interview.

In an interview with the German Economic Weekly, Hans Demant revealed that the Volkswagen budget car plan will be produced in China in the fall of 2016 and will cost about 7,000 Euros (about 60,000 Renminbi). Its first model will be a hatchback four-door sedan, similar in size to the Volkswagen Jetta. Power, it will be equipped with a 4 1.5L displacement gasoline engine, the maximum power of 100 horsepower. "The car will only provide one type of engine, and there are two options for speed change, with less change in configuration," Demant said. More follow-on models will be introduced in the future.

Although the price is low, the Volkswagen cheap car does not intend to shrink its configuration. "The high cost performance does not mean to reduce the necessary investment. The Volkswagen cheap car will be equipped with all the configurations available in this segment - reliable, wear-resistant, easy to repair and cheap." Demant said. It is reported that Volkswagen will be equipped with air bags, ABS anti-lock braking system and air conditioning equipment. "We expect that cheap cars will have a good sales volume." The car's profit margin is 8%-10%.

Demant revealed that Volkswagen's cheap car will become a new brand, "The brand's specific name has not yet been determined," Demant said. However, it is certain that the car will be produced entirely in China, including all the spare parts provided by local Chinese manufacturers. "Our plan is to use China's existing production lines for production." Currently, Volkswagen has cooperation with FAW and SAIC in China.

Not surprisingly, the German market will not be able to see this car. "Western Europe is not our target market," Demant said. "We will focus on China first." "Our first step is to sell 200,000 vehicles a year, and then gradually increase sales, but not in a short period of time."