Volkswagen plans brand tie-up with FAW

Volkswagen AG, Europe's largest carmaker, plans to produce cars for a planned budget brand in China with joint-venture partner FAW Car Co, two people familiar with the matter said.

Volkswagen aims to introduce the new low-cost marque in the world's largest auto market in about three years and may eventually expand it to more than one model, said the people, who asked not to be identified.