Volkswagen is rumored to be developing a new entry-level model positioned below its small Fox hatch that's due for release by 2009. The vehicle will be aimed at emerging markets and is likely to be built in Russia, India or China. Buyers in these regions value low costs over style and accessories, and accordingly the new model is expected to priced between €5000 and €6000. Renault’s budget-based Logan has proven popular and industry giants General Motors and Toyota are rushing to release econo models of their own.
VW won’t be selling the low-cost car in western markets, but it may release a new premium small hatch to compete with cars such as the MINI Cooper. Germany’s Auto Bild has suggested that the car could even feature a rear-engine RWD configuration. The same publication created this rendering of the budget-based model, which you can see in full over at The German Car Blog.