The spirit of the "people's car" is apparently alive and well at Volkswagen.
The automaker is planning to launch a new company to sell low-priced cars in emerging markets, according to a report in a German automotive magazine. The strategy is similar to the just announced revival of the Datsun brand by Nissan to market locally affordable cars in Indonesia, Russia and China.
VW board member Ulrich Hackenberg told Germany's Auto Motor und Sport that the company is preparing a new line of cars with a base price of just $6,620 (€5,000).
"In India, we are building the Vento and a localized version of the Polo, which costs only about €7,000," he said, adding that in China, the company is planning a cost-effective car about the size of its Seat Toledo model.
Volkswagen will introduce cars priced between €5,000 and €7,000, but not under the VW brand, the magazine reports. The cars will carry a brand of their own.
Hackenberg added that a decision on whether these cars will be produced with a Chinese partner has not been made.
NewsCore contributed to this report