VW May Link with Chinese Partner for Low-Cost Car Project

Volkswagen AG is considering a partnership with Great Wall Automobile Holding Co. to develop a low-cost car for China and other emerging markets, Manager Magazin reports.

Company sources tell the German magazine VW also is considering an equity stake in Great Wall. Neither company has commented on the report. But last weekend VW said it might develop ultra-budget-priced minivans and SUV for the Chinese market.

VW has struggled for years to create its own such vehicles but so far has been unable to reach a sufficiently low cost point. Finding a solution is part of the company's goal of outselling Toyota Motor Corp. and become the world's highest-volume carmaker by 2018.