VW Readies Low-Cost Brand in China by 2017

Volkswagen AG plans to introduce a car for China that will carry its own brand name and is likely to be priced under 59,800 yuan ($9,600).

CEO Martin Winterkorn confirmed the plan but provided few specifics during VW's shareholder meeting on Tuesday. He indicated the program will be approved soon and the car will probably go into production three years from now.

Last year VW sold nearly 3.3 million vehicles in China, up 16% from its volume in 2012. The company aims to increase its annual production capacity in the country to 4 million vehicles by 2018 as part of a five-year, €18 billion ($25 billion) expansionary spending spree in China.