Autocar UK has learned from insiders that Volkswagen's long-running low-cost car program has taken a new turn.
Previous work on the brand's budget car (dubbed 'Tantus' by the media) has been put on hold as it became a contentious issue within the company. The project had initially failed to meet strict cost targets and executives felt that a basic vehicle would not qualify for a Volkswagen badge.
The v2.0 low cost car project is underway with a sedan and an SUV which will share as many common parts as they can, reads the report. Though Autocar doesn't say, these cars would be in the A- or B-Segment, aimed at first time shoppers.
The budget offering would not be extended outside the Chinese market as Volkswagen does not compete on price and the brand is stern on being a premium option in the landscape of mass-manufactured car makers.
[Source - Autocar.co.uk]