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Soon everyone will have a chance to drive around with a new car thanks to Volkswagen, according to a statement released by the company this week.
Volkswagen said it had begun to develop a low-cost car specifically for China, but analysts said it is likely going to sell in other emerging markets. The car, which the company said it would cost around $8,000 is based on Renault's low cost brand Dacia SA, which in the meantime has found success in Europe and became the main profit driver for Renault.
Volkswagen only plans on selling the new model in China for now, though that could change and it is fair to think that there would be a market for this car almost everywhere. Who does not want a brand new Volkswagen for $7800?
Volkswagen also plans to expand production in China by more than 70 percent over the next five years, with the construction of at least seven new factories, including one announced today that will produce 300,000 cars a year.
The company needs China to deliver, because Europe, its historical base, is looking bleak. Volkswagen's sales have been declining, and fell 8 percent in the first two months of 2013. The problems on the continent go far beyond Volkswagen, with falling demand for all autos.