Published on February 14th, 2013 | by Christopher DeMorro0
VW Building $8,000 Budget Car For China
Because of the way Chinese tariff laws work, the car will likely be sold under a joint venture between VW and one of its Chinese allies. The goal price is between $8,000 and $9,400 in a market segment that sees over three million annual sales, and is growing. The car will likely use some existing Volkswagen technology, probably borrowed from other budget cars like the Up! and Golf.
Volkswagen isn’t alone in pursuing the economic end of the market. Nissan is working on a $3,000 car under the Datsun brand, and Indian automaker Tata makes the Nano, which at launch could be bought for about $2,000 in India. How low will automakers go, and will America ever see a car as cheap as $8,000 again?