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Volkswagen AG is to produce a cheap saloon in conjunction with VW Shanghai.
Intended for both the North American and Chinese markets, the joint venture is a way of combining the global expertise of Volkswagen AG, with the localised knowledge and cheaper manufacturing process available within the Shanghai branch.
The end results of this collaboration will replace the Passat Lingyu (a re-designed version of the previous generation Passat) in the Chinese market, and form a new entry-level saloon in America.
Though Volkswagen Shanghai celebrated its 25th anniversary this year, this will be the first time it has been involved in developing a car for the global market, where it will have to compete with other expanding Chinese manufacturers such as Chery and Brilliance.
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