According to German magazine Volkswagen CEO Martin Winterkorn is working on two parallel low-end car platforms. Both cars are targeted at an entry price-point of €7,000 with one being developed in Germany and the other in Brazil. The Brazilian model would evidently be targeted at emerging markets and could even be built in India.

While it's good that VW is developing low-cost efficient cars, from a business perspective it seems highly dubious to develop two parallel and independent models at this low price level. Any vehicle in this category is going to have low margins at best. It seems like it would be smarter to develop one car and put the effort into making it more efficient and desirable.

[Source: Just-Auto - Sub. req'd]

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