Volkswagen’s management board will give the green light to an entry-level car designed to broaden the brand’s appeal in markets such as China, India and southeast Asia, according to a German business magazine.
Manager Magazin reports the long-rumoured budget car project will finally get approval from senior Volkswagen executives in the coming weeks before passing with the company’s supervisory board by June.
The magazine reports the German car maker has reached internal cost requirements for the cut-price model after more than a year of trying to make the sums work.
Various media sources still differ on the exact details, however, with some reporting the entry model will wear Volkswagen badges and others saying it will launch under an entirely new brand, similar to Nissan’s relaunch of the Datsun division.
Referencing the German magazine, Reuters reports it will be built in China from late-2016 or early-2017 and could sell for between 6000 and 8000 euros ($9200 and $12,200).
The new model, which has also been linked with Baltic, Eastern European, Latin American and African markets, is expected to be an important part of Volkswagen Group’s goal to oust Toyota Motor Corporation to become the world’s largest car maker by 2018.