Shanghai Volkswagen Co Ltd yesterday launched its first self-developed model, the Lavida sedan on the Auto China 2008 as joint ventures are racing neck-to-neck to build their own models with improved research and development strength.

The Lavida sedan, which means "life and hope" in Spanish, will be part of Volkswagen's global production line-up, which integrated its global technology and more local design.

Frank Brustmann, vice president and executive director of Volkswagen Brand, said the model will be available with a 1.6-liter or 2.0-liter engine capacity and has more than 80 percent local content.

When it hit the market this year, the VW Lavida will rival with General Motor's Excelle and Peugeot Citroen's Peugeot 307, targeting the young generation, who are independent and aged between 28 and 40.

The VW Lavida, part of the VW's Olympic fleet, is also the first VW-branded A-class model, economy car, for Shanghai VW, the joint venture between German car maker Volkswagen AG and Shanghai Automotive Industry Corp, being a big step forward to boost sales in the fast expanding market .

Joint ventures in China have been pacing up the development to their self-branded models after years of assembly, aiming to increase market competitiveness on the world's second largest market.

(Shanghai Daily April 21, 2008)