Volkswagen to make car of EUR 7,500

The Managing Board of Volkswagen should soon give the green light for the production of cheap cars, the German magazine Manager reports.

According to the Slovakian website sme.sk, the VW Supervisory Board should decide on this project by the summer.

The Volkswagen spokesperson refused to give any comment on this news. However, VW CEO Martin Winterkorn said last week that the company was "very close to its aim" with the cheap car project. Last steps are always the hardest ones, he added.

Manager claims that future cheap cars should be sold under the new, 13th brand of the Volkswagen group, adding that their price should not exceed EUR 7,500.

The sale of these vehicles should commence in late 2016 or early 2017 in China, where Volkswagen intends to produce them in cooperation with local partners. They later may be marketed in India or southeast Asia. The company plans to sell half a million these vehicles annually.