Volkswagen is considering collaborating with China’s Great Wall Motors on new entry-level models for China, according to reports in Germany. 

The CEO of Volkswagen’s Chinese operations, Jochem Heizmann, told reporters his company was considering developing new sport-utility and multi-purpose vehicles in collaboration with Great Wall to help it keep up with fast rising demand for these vehicles in China.

Great Wall is one of China’s leading manufacturers of SUVs. The reports suggest Volkswagen has struggled to develop low cost models for emerging markets and that collaboration with Great Wall would help reduce costs.