Volkswagen's new head of R&D Hans-Jakob Neusser has reconfirmed the company is developing a range of budget cars.

Volkswagen's new head of R&D Hans-Jakob Neusser has reconfirmed the company is developing a range of budget cars.

VW is not giving up on its plans of developing a lineup of affordable cars, in the same way that Renault has Dacia which sells cheap yet reliable no-frills cars with a short list of included equipment. Hans-Jakob Neusser has replaced Ulrich Hackenberg as R&D chief at VW and he recently declared "our budget car plans are progressing".

He added the cars will be co-developed with a joint-venture partner and chances are its name is SAIC. As a result, the vehicles will probably ride on the same platform used by the China-made Volkswagen Santana.

In related news, Neusser mentioned development of a four-door replacement for the Phaeton is at an advanced stage but he didn't specify when the car will be unveiled.

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