VW JOINT VENTURE TO PRODUCE LOW-COST CAR FOR CHINA MARKET

BEIJING - Volkswagen Group has announced plans to produce a low-cost model (priced between RMB47,700 and RMB55,700) with its joint venture partner, FAW Car Co., as part of VW’s goal to be the world’s largest carmaker by 2018. China represented 31% of VW’s 9.2 million deliveries last year, with plans recently announced to build seven new factories in China, and the release of new and updated models in 2013. Increasing demand for VW products in China has helped counteract declining demand in Europe