WOLFSBURG, Germany -- Volkswagen AG may expand production of a mid-sized sedan designed for U.S. customers to China in a bid to win buyers in the world's biggest auto market.
The model, which will be priced at about $20,000, initially will be built at VW's new plant in Chattanooga, Tenn., and sold in the United States in the second half of 2011.
"We will see demand for this car growing in other countries, such as China," said Ulrich Hackenberg, head of Volkswagen's brand development. "Our production pattern allows us to transfer vehicles from one plant to another at relatively low effort."
VW, aiming to surpass Toyota Motor Corp. in sales and profits, plans to add two Chinese factories this year to double production to 3 million cars within four years.
Europe's largest automaker plans to invest 6 billion euros ($8.33 billion) in China for the expansion and to add models. VW sales in China jumped 41 percent to 1.3 million vehicles through August.
Seeking to return U.S. operations to profit no later than 2013, VW is targeting 67,000 U.S. sales of the new mid-sized sedan next year, Jonathan Browning, VW's new U.S. chief, said at a conference in Wolfsburg. He said annual deliveries of the vehicle, whose name will be unveiled next year, may reach 150,000 from 2012.