Volkswagen to Hit International Market With Chinese-Built Car

After much delay, the deal between Chrysler and China’s Chery, to build a brand new subcompact car, is finally underway. The upcoming Chinese-built Dodge is already undergoing scrutiny by the brand’s engineers to ensure that quality and safety are up to spec. Chrysler is even going so far as to first launch the vehicle in less critical markets that have less demanding standards, to judge how it performs before selling it in North America.

Another Chinese brand that’s supposedly heading our way is Brilliance Auto, assembly partner to BMW, which reportedly assisted in the styling and production techniques of their cars. The brand was recently put in the spotlight for the extremely poor crash test results (1-star) of its BS6 sedan in a simulation EuroNCAP crash test. Even after one of its two European distributors closed up shop and the brand pulled out of the NYSE, internally Brilliance and its prospective North America distributor maintains that all is still a go for a North American launch early next year.

Now Reuters news agency is reporting that a third Chinese-built vehicle is set to enter the North American market, and the brand it’ll be badged as might surprise you. After producing VWs in Mexico, Brazil and South Africa, the next area of cost-effective labour Volkswagen will utilize is China. Volkswagen has assembled vehicles in China like many other Western automakers (BMW, Audi, Ford, Cadillac and Volvo are just a few), and has a home field advantage as being one of the best-selling brands in the Chinese market, but what will set this upcoming car apart is that it will be engineered and designed in conjunction with VW’s Chinese partner, Shanghai Auto.

The projected vehicle will be marketed as a global car, with the position of an affordable family sedan. This should help Volkswagen boost its sales in other markets and provide North American buyers with an affordable and roomy vehicle. In China, this car would replace the Passat Lingyu, which is an upgraded Passat B5.5 (previous generation) that’s been restyled with the corporate chrome grille and a new interior.

Unlike the Chery-Chrysler subcompact, or any of the Brilliance products, it looks as if Volkswagen will be taking a much larger role in developing the vehicle in order to ensure it meets the brand’s standards for safety and on-road performance. As a global vehicle, it would be logical to think that the successor to this vehicle would be better than the car it replaces. Considering the outgoing Passat was a pretty decent vehicle in its day (and would still be today for that matter) it’s a bit more comforting. The real worry in our view is the quality and reliability of the vehicle. After recently improving its quality issues, it would be wise for VW to proceed with caution.

Next Generation Volkswagen Phaeton to be Both Sedan and Roadster?

If at first you don’t succeed, try again. This appears to be the motto that Volkswagen is taking with regards to its ultra-luxury sedan, the Phaeton.

The Phaeton was an excellent vehicle, the perfect demonstration of what an automaker with brilliant engineers can do if it chooses not to concern itself with budget constraints. Built with immaculate precision, the highest quality and newest technology, the Phaeton was a truly impressive vehicle. The only problem is that it was a sales flop. It failed to capture the North American market due to image-related problems. Consumers didn’t feel compelled to invest considerable amounts of money in an entry-level brand that also produces Golfs, Jettas and Beetles. But just because the Phaeton didn’t make it in North America doesn’t mean that it’s a dud elsewhere in the world. In other markets, including its home country of Germany, it recently received a mid-cycle update that focused on appearances and technology similar to the changes made to the Touareg 2. And that mild facelift makes it clear that Volkswagen is getting ready to bring the next generation Phaeton to market in a couple of years.

Insiders are reporting that the underpinnings of the new Phaeton could come from upscale sources, as if its relationship with Bentley’s Continental GT and Flying Spur isn’t enough. The first rumour sees Volkswagen teaming up with parent company Porsche, twinning the development of the Phaeton with the sports car brand’s up and coming Panamera four-door. This is a fairly believable approach considering the two worked together in developing the Touareg and Cayenne combo. The other potential version would link the Phaeton to the next-generation Audi A6 and A8. The vehicle that was spied, sported the tail end and doors of the current-generation Audi A8, which could indicate that the big VW would go on a weight-loss diet consisting of an aluminum space frame chassis.

When the Phaeton returns, it will most likely be offered in a four-door version as well as a new two-door version. The former won’t be the limo-like vehicle that was brought here between 2003 and 2005, but a sleek new four-door coupe, a vehicle that could lure buyers away from the Mercedes-Benz CLS, the upcoming BMW CS and other sporty sedans. Previously, it was thought that this vehicle would be based on an extended wheelbase version of the Passat, allowing for it to be built and sold at a relatively affordable price, but it looks like the plans to up VW’s image by chasing the world’s finest brands are back into play.

The real surprise, however, comes from the fact that Volkswagen looks to also be targeting the grand touring convertible market, and specifically the Mercedes-Benz SL-Class roadster. The grand touring market is a highly profitable arena with competitors from Jaguar, BMW, Maserati and others, and Volkswagen could easily obtain a slice with a sleek two-door folding hardtop convertible. Spy photographers have snapped a vehicle that fits this description to a tee, circulating around Norfolk, England - the home of engineering consultants and sports car makers, Lotus.

Whatever the end result may be, it’s clear that Volkswagen is serious about taking on and beating the competition, entry-level, top of the line or otherwise. It certainly has the ambition and the resources to do so.