Published on May 2nd, 2015 | by Daniel Sherman Fernandez0
VW Might JV With Great Wall On Budget Car
Rumor circulating in the Asian motoring market says that Volkswagen Group is considering cooperating with China’s Great Wall on a new budget model. One option that had been discussed in talks with Great Wall was Volkswagen taking a stake in the Chinese carmaker.
Volkswagen has struggled to develop a budget car for emerging markets, a key part of its drive to become the world’s biggest automaker, because it found it difficult to keep costs for the vehicle low enough. The VW Golf 1st edition from 1975 is still being produced in South Africa as a low cost model with modern features. For China, a car like the Jetta or Polo Sedan might be the answer.
Retail sales of SUVs in China soared more than a third last year to 3.82 million, and have more than doubled since 2012, rapidly outpacing growth in other segments, according to the China Passenger Car Association.