Our sister publication, Autocar UK, has reported that Volkswagen’s long-running budget car project will see progress with the engineering of a new and inexpensive set of components set to underpin both a sedan and an SUV.

Limited information is available because work is still underway. However, if the project makes it to production, the cars will be sold only in the Chinese market. Project work was previously put on hold due to certain issues, such as the failure to meet cost targets and brand image association, with some executives feeling that such a basic vehicle would not be worthy of the Volkswagen badge.

Sources say that outside of the Chinese market, VW will not be competing on price because the brand is centred on being the premium choice among all mass-market carmakers.