First and foremost, this brand will be for the China market only. Second, it will be electric cars only. The first model to be produced is the mk4 Jetta (known as the Bora in the rest of the world) or the Golf.
Of course, any lessons learned from this brand will be applied to the rest of the VW Auto Group through the Chinese partner, FAW-VW (first auto works-vw). Many cars for the North American market are assembled in Mexico to save labor costs. Perhaps the mix of educated workers and cheap labor could mean more high tech cars built in China? Is this the first step in shifting the gravity of electric car development to the far East?
source: china car times