VW Near Decision on New Budget Brand?

Volkswagen AG's board will decide by year-end whether to approve plans to launch a new brand of low-priced vehicles for Europe and emerging markets, according to Car.

The British enthusiast magazine cites VW documents that say the company contemplates three models: a sedan priced at about €6,000 ($7,800), a wagon at €7,000 ($9,100) and an MPV at €8,000 ($10,300).

All three models would use existing front-wheel-drive VW platforms and feature relatively sparse levels of equipment, Car says. The magazine opines that the vehicles will be produced in China or India.

VW is developing the still-unnamed brand primarily for emerging markets, according to Car. But the magazine says VW would sell the new lineup in Europe too, where it would compete with Renault SA's budget-priced Dacia brand.