German Car Zone

Volkswagen’s joint-venture with China’s Shanghai Auto will spawn a new car that will eventually go on sale in North America. The new model will mark the first time that VW’s Chinese partner will help develop a vehicle targeted at a global market, Reuters Reports.

There’s been no deadline set for the introduction of the new model, but reports suggest that the first car will be the follow up to the Passat Lingyu, which is also produced by the VW and SAIC joint-venture.

This is the second such deal to be announced in recent months. The first was the long drawn out Chrysler-Chery deal, which will see a Chinese built minicar sold in global markets most likely under the Dodge label. VW has had trouble gaining traction in the US market, but we’re not convinced this is the best option to take for increasing sales. Poor safety or build quality could damage the VW brand forever in one of the most important car markets in the world.

Source: Motor Authority » Chinese built VW to be sold in US

What the hell happened to the factory in the US?

It makes perfect sense ......VW are getting too expensive to be competitive in the compact market. German-made products are pretty much pricing themselves out of the middle-market.

Agreed

The Germans are indeed losing their comparative advantage in producing cars... Shame really. One day maybe we'll see German made cars so expensive they are only accessible to the super rich.

I quite agree.

-But not everyone is enthusiastic about the idea fearing that quality may take a hit. However, what really worries (pisses) me off, is that people are so unbelievably uninformed:

The Mags Report: Did I Say VW Was On A Death March? I Meant They're Almost At The Finish Line

Hmmm... perhaps the numpty should take a look at the Chinese Volkswagen website to find out there is no rebadged Brilliance. Besides, it's not like Chinese steel is worse than German steel or they are going to stuck a VW badge on a Brilliance BS6 and sell it in North America as the Volkswagen Todeswunsch.

i actually found chinese passats to be better quality than my german touareg. as long as quality controls are in place and no one has room to manipulate cost cuts, i'd buy a chinese veedub.

think about it this way. for the price of a german worker you can have many chinese workers. make those spare workers work in quality control, and you'll have a better overall car (give other production factors remain the same). not exactly that simple but you get the idea. there is nothing wrong with chinese manufacturing, there is however a huge problem with greedy chinese management trying to cut costs wherever possible. the bigger fear is probably from the chrysler-chery venture to produce small cars. those are just fancy words for mobile death trap.

Frankfurt Motor Show rumors: VW unveiling ultra-cheap ride

Due to its unique shape and low cost, the VW Beetle is perhaps the most recognizable vehicle ever to grace international roads. Since the original Bug faded away into history, the folks in Wolfsburg seem to have gotten away from budget wheels in favor of high-quality, but pricey, offerings. That's all about to change, however, as Volkswagen plans to unveil their blueprint for a new bargain VW at the Frankfurt Motor Show. The noble idea is to produce a vehicle for under €8,000 while retaining the look and feel that VW customers have come to expect. With the high cost of labor in Europe, the idea may seem like a pipe dream, but VW's plants in China and Mexico should be able to get the job done. We're probably not the only ones that hope V-dub can pull this one off.

[Source: The German Car Blog]