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Volkswagen building budget car family planned for China in 2018

Volkswagen has publicly pondered a low-cost car for China, something akin to Nissan's Datsun revival in Southeast Asia, for at least three years. In 2013 it tapped Chinese partner FAW to help develop an entire budget brand, with plans to have something on the market in 2016 in the 6,000- to 8,000-euro range. About a year ago, VW said it couldn't figure out how to engineer an inexpensive car that didn't run counter to the brand's values, then three weeks later said it had overcome the issues. Reuters now reports that VW CEO Martin Winterkorn told German newspaper Bild am Sonntag, "We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback." Winterkorn didn't offer any other details like who VW would work with to build it - VW has partnerships with both FAW and SAIC, but the announcement will be welcomed by the brand's Chinese outpost. When this adventure started, VW said it was working to create a model that would cost 6,000 to 8,000 euro. That estimate has increased. Winterkorn is now saying the 2018 offerings will come in between 8,000 and 11,000 euro. In a straight euro-to-yuan conversion, that would equate to Chinese pricing of 56,000 to 77,000 yuan. For comparison, the New Polo with a 1.4-liter engine and a manual transmission starts at 85,900 yuan. Perhaps with an eye on the success of the Nissan-Renault sub-brand Dacia in Europe and emerging markets, Winterkorn told Bild, "We will see if this is something of interest for other markets as well." On the opposite end of the price/performance spectrum, Winterkorn also said that VW is working on two new models for Bugatti, one powered by a traditional gasoline engine and another with some sort of hybrid setup. The latter model would reportedly be the higher-performing of the two, though it's not clear whether there would be two vehicle lines or two versions of the same vehicle. As ever, as soon as we know more, so will you.

VW midsize crossover production headed for Chattanooga

Potential labor woes aside, it looks like Volkswagen's Chattanooga, TN factory must have done something that impressed the bosses in Germany, because it sounds like the three-year-old factory is set to score a second model.
The factory currently builds the Passat, and has been in the running alongside VW's Puebla, Mexico factory to build a new crossover vehicle, likely based on the CrossBlue Concept. According to Bloomberg, a pair of unnamed sources have confirmed that Chattanooga is the favorite ahead of an official announcement.
When last we heard about the CrossBlue Concept, word was that a production decision had been delayed over concerns about the three-row CUV's business case. That August 2013 story claimed that a decision regarding the CrossBlue would be pushed back until early in 2014, which means we're ripe for some sort of news, whether good or bad.

VW debuts Get Happy Super Bowl ad

Brace yourself for another tidal wave of Super Bowl commercials. Volkswagen has released its spot for this year's big game. Set to air during the second quarter, the Get Happy spot follows one jubilant office worker as he makes his way through the day, spreading joy wherever he goes. The source of his happiness? A Volkswagen Beetle, of course. Now, if you're wondering why a gaggle of white guys are running around on your screen with Jamaican accents, it will help to know the spot is part of a larger Get Happy campaign featuring Jimmy Cliff.
The first ad in the series featured the artist singing his rendition of "C'Mon, Get Happy," complete with a little help from some notorious unhappy YouTube stars. You can take a look at the new ad before it airs below, along with the complete press release for a little more background.