VW Ponders Low-Cost MPVs, SUVs for China

Volkswagen AG is studying plans to create whole families of budget-priced multipurpose vehicles and SUV/crossovers for the Chinese market, according to China CEO Jochem Heizmann.

He concedes to reporters ahead of the Shanghai auto show that VW currently lacks models in both segments, which he describes as the fastest-growing sectors in the Chinese car market.

The lack of product means VW won't outperform the overall Chinese market this year, Heizmann says. He adds that growth also has been hampered by VW's lack of production capacity in the country.

VW plans to boost annual output in China to 5 million vehicles by 2019 from 3.5 million in 2014. Heizmann tells reporters VW could buy existing factories to gain capacity more quickly.