Gazeta Mercantil reports that Volkswagen will manufacture a van derivation of the Fox. Volkswagen plans to launch a van early in 2006 in Argentina based on its Fox model compact car. The report added that the new model marks Volkswagen’s debut in a new market segment to compete with the GM Meriva and with the Fiat Idea.

Volume was put at 50,000 units a year and the report said that the model would be sold in Argentina and abroad as part of a US$200 million investment plan that the multinational plans for Argentina during 2003-2006.

A source told the newspaper: “It is almost certain that the announcement (of the new car) will come before the end of the year, because the vehicle will be launched at the beginning of 2006, and to produce a car it is necessary to have at least a year of anticipation.”

The new model will be exported to other Latin American countries, primarily to Brazil, Mexico, Chile and Uruguay.

The price should be between US$10,000 and US$13,300, according to the local press.