VW Poised to Approve Budget-Car Program

Volkswagen AG is ready to move forward with a long-simmering plan to develop a low-cost car for emerging markets, according to Germany's Manager Magazin.

The vehicle, expected to sell for $8,300-$11,000, would be produced in China.

VW's management board is likely to grant approval in a few weeks, and the supervisory board is set to finalize the project this summer, Manager says.

Reuters notes VW brand development chief Heinz-Jakob Neusser complained earlier this month that hitting the company's internal cost targets for the project was becoming increasingly difficult. He cautioned that the car would not be approved unless it could meet its manufacturing budget.

Analysts opine that VW will need the entry-level car to meet its target of becoming the world's highest-volume carmaker by 2018.