FAW-VW said the A1, which was launched in China at the beginning of October 2011, will not be manufactured locally, reported Beijing News.
Deputy managing director for sales at FAW-Volkswagen Audi, Zhang Xiaojun said the reasons were unclear costs and difficulty in coordinating with suppliers.
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However, he stressed that the JV is still committed to expand domestic production, adding the Q3 crossover is set to begin production in China soon.
Xiaojun said, “There is a lot of potential for development in the Chinese subcompact market, with a clear trend evident in many cities for smaller and smaller cars.”
