Volkswagen is planning to build a new car that will set a rivalry between other economically-friendly cars. The chairman, Martin Winterkorn, said that the German auto maker is planning a new entry model as a part of the broader strategic plans of making new cars for the people and the masses.

The new car will be a four-seater and is said to belong in the German carmaker’s European lineup below the Brazil-built Fox. It is also coming to set a rival to the budget friendly Dacia Logan as well as with other famous brands like the Toyota Aygo and its French siblings, the Citroën C1 and Peugeot 107.

"Shortly after my arrival in Wolfsburg, I gave design and development the job to develop a new car beneath the Fox," confirmed over the weekend by Winterkorn to the Germany’s Suddeutsche Zeitung newspaper that a new model will be released.

The new car will have its exclusive Volkswagen parts and performance parts. According to the chairman, the car will be made available first on the European car market before it will be sent to markets in Eastern Europe, India, China and South America to be available on showrooms. He also denies that the concept came up because of the emerging European markets.

The new car promised to be economical, attractive and affordable car that can be used every day according to the chairman. It will be built soon but the price and specifications are not official yet. We all have to be updated with the latest piece of news about this one though. Don’t worry I’ll keep you posted when I get word.