VW Promises Update on Low-Price Brand for China

Volkswagen AG CEO Martin Winterkorn says the company continues to work on plans to launch a line of locally branded entry-level cars in China, Bloomberg News reports.

Winterkorn indicates the company will offer a public update sometime later this year. VW has been pondering a China-specific brand for entry-level cars a segment that accounts for roughly 20% of the country's passenger-car market since 2011.

Other carmakers, including General Motors, Honda, PSA and Nissan have already launched such brands at the insistence of China's central government.

VW said earlier its goal is to develop a profitable $7,000 car for China and other emerging markets. Bloomberg says the company has been struggling to meet that target.