China to develop a Volkswagen for the U.S.

Volkswagen may be betting the world’s largest car market and the world’s fastest growing market will like the same car. VW is having its Chinese subsidiary, Shanghai Volkswagen, develop a new mid-sized car for the U.S. and China. This new car should be about the size of a Camry, and will replace the China-only Volkswagen Passat Lingyu by 2010. Since the car will be Passat sized, it may also be a replacement for the Passat in the U.S.

The ‘New Midsize Sedan’ or NMS may be produced at the new Volkswagen plant in Chattanooga, Tennessee by 2011. The car’s body - including exterior and interior parts - will be developed by Shanghai Volkswagen.