Volkswagen in China will create a new brand for low cost car

Volkswagen Group plans to launch a new brand in China, a new brand under which the country will sell low cost cars to eight thousand euro. Currently, the German auto giant leads the negotiations with their Chinese counterparts, reports Bloomberg referring to representatives of the concern.

In management's opinion Volkswagen, the new brand will learn the automaker in the Chinese market a new segment. Currently priced models in China are ready for Concern General Motors, as well as the companies Honda and Nissan. Low cost car will be produced in collaboration with Chinese automakers under their own brands.

In addition, in the near future a special brand for China is preparing to introduce an alliance PSA Peugeot Citroen. It will be developed with input from the partner of French car manufacturer - Changan Automobile Group.

Earlier it was reported that the company intends to develop a compact Volkswagen budget model car with an Indian company Maruti, owned by Suzuki. The machine will be designed for emerging automotive market. According to preliminary information, the cost of new items will not exceed 8,600 dollars.

By the end of 2010, China became the largest automobile market in the world. Last year there were 13.8 million cars are sold.