Auto Makers Considering Developing China-Only Brands

Volkswagen AG and PSA Peugeot Citroen SA are considering developing China-only brands with their local partners in the country, The Wall Street Journal reported Thursday, adding to a growing trend among foreign automakers targeting surging demand for low-cost cars.

Volkswagen is in discussions with one of its two Chinese partners about the possibility of starting a new jointly-run brand, a person close to the German automaker said.

"The talks have been going on for some time, and they are in their final stage," the person said. He would not say which of Volkswagen's partners, SAIC Motor Corp. or FAW Group Corp., it is discussing the matter with, or otherwise elaborate.

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