Volkswagen to Sell Chinese-Built Car Internationally

After much delay, the deal between Chrysler and China’s Chery, to build abrand 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 labor 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, withthe 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.