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VW pondering low-cost sub-brand for China?

More detail is being sketched into the Volkswagen Group's plan to launch a low-cost brand for emerging markets. Late last year a German report quoted a VW rep saying that the brand has been interested in building a no-frills car, the kind that would challenge Dacia and Datsun, for a while. With both Proton and Suzuki effectively out of the partnership picture, a report in Reuters suggests VW could go straight to China, developing a car with its joint venture partners and building and selling it there.
Officially, company CEO Martin Winterkorn said the issue of a model for emerging markets would be decided this year but VW isn't any closer to confirming any kind of plan for a car in its portfolio underneath the Up!, remarking to Reuters about the China possibility, "That's an issue we're currently looking at."

2013 Volkswagen Golf R Cabriolet

The Golf VI's Last Hurrah Is Pure Niche
This was in the heart of the ultra-chic Côte d'Azur during winter. The car to be tested was the not-for-North America 2013 Volkswagen Golf R Cabriolet. Prevailing weather conditions here this time of year are bizarrely pleasant, as though a dome of Swarovski crystal has been placed over the entire region to protect it from any real winter spoiling things. And the zippy Golf R Cabriolet is a sports car designed precisely for this area's preciously narrow winding streets, as well as for the lofty budgets of its property owners.
So then why was it snowing like we were in northern Michigan? The weather front hit from the north like a swift kick to the Jordaches. The roof was open on this Candy White Golf R Cabrio and I, as is my wont, was determined through thick or thin to keep it retracted. It had been raining and sometimes sleeting like the End of Days, but I kept the lid cracked because the 261-horsepower cabrio - the most powerful convertible ever built by Volkswagen - was snipping along nicely as the bad weather blew over my head and wetted only the rear headrests.

VW exec calls US ops a 'disaster'

Today in the Tell Us How You Really Feel file we have Bernd Osterloh, head of Volkswagen AG's Group Works Councils and member of the company's supervisory board, labeling the company's US operations "a disaster." Why? Because Osterloh believes VW of America doesn't have the models it needs to be competitive here, hasn't been decisive enough about its plans and German higher-ups still don't understand the US market.
In truth, the top labor rep at the German conglomerate is echoing sentiments we've heard from VWoA executives for years, and there's been the same commentary from dealers: Germany doesn't pay enough attention to what the US market really wants. Even ex-VWoA CEO Stefan Jacoby, who preceded the recently departed Jonathan Browning, said early in his tenure that one of his tasks was to get his German bosses to start delivering what the US market demanded. New CEO Michael Horn is saying much the same thing seven years later, telling Sky News that it has to increase "the speed at which we bring new models to the market and innovation to the market."
Osterloh wants to get "more models" here, including a pickup truck, but we'd wonder if the economics have changed from when Jacoby said they'd need to sell 100,000 per year to make money. Osterloh also wants a decision on where the CrossBlue will be built. Although it looked as if the Chatanooga, TN plant would get the call, the Puebla, Mexico plant is still in the running because of lower operating costs. No matter what happens right now, Osterloh thinks the situation won't get better for another two years when revamped models arrive, but at least the company can start taking the steps for a better US future.