In a recent interview, Volkswagen's head of head of research and development said the company will launch a new entry-level brand for emerging markets.

According to a recent report, Volkswagen will create an entry-level brand for emerging markets.

Speaking with Auto Motor und Sport, VW's head of research and development, Ulrich Hackenberg, said building a cheap car is a "real challenge" and the company has to "closely look" at how much content they can take out to make their vehicles affordable. He added, "Those cars will not be able to be sold under the Volkswagen name."

Little is known about the brand's lineup, but Hackenberg wants a sedan or van that will cost approximately €5,000 ($6,585). They could be produced with a Chinese partner, but nothing has been decided as of yet.