Volkswagen’s joint-venture with China’s Shanghai Auto will spawn a new car that will eventually go on sale in North America. The new model will mark the first time that VW’s Chinese partner will help develop a vehicle targeted at a global market, Reuters Reports.

There’s been no deadline set for the introduction of the new model, but reports suggest that the first car will be the follow up to the Passat Lingyu, which is also produced by the VW and SAIC joint-venture.

This is the second such deal to be announced in recent months. The first was the long drawn out Chrysler-Chery deal, which will see a Chinese built minicar sold in global markets most likely under the Dodge label. VW has had trouble gaining traction in the US market, but we're not convinced this is the best option to take for increasing sales. Poor safety or build quality could damage the VW brand forever in one of the most important car markets in the world.