Renault Vel Satis replacement to be built in South Korea

Reports are that Renault is planning a follow up to its mold-breaking Vel Satis executive sedan, joining an alleged roadster for release in 2009.

Renault Samsung Motors, a South Korean subsidiary of the French company, has been tapped to produce a high-end Vel Satis replacement for export markets, including France.

The new four-door vehicle will be produced in Butan, but sold under the Renault banner in Russia, the Persian Gulf, Latin America, and Western Europe.

A follow up to the critically acclaimed, but poor selling Vel Satis, the new sedan will join production of a new 4×4 for the Korean manufacturer. RSM plans to produce 170,000 vehicles this year, with plans for around 300,000 by 2010.

Volkswagen Up! heading for production

Confidential documents leaked from Volkswagen have revealed the group’s expectations for its new breed of rear-wheel-drive small cars.

We got our first glimpse of this next generation at the Frankfurt motor in September, in the form of a cleverly-packaged, rear-engined city car concept called the Up!.

It’s expected to go into production in 2010 and will most likely be built at one of Skoda’s factory in the Czech Republic that is currently being modernised to cope with extra production capacity.

VW estimates sales of 4.1 million models over a nine-year lifecycle and considers this its biggest project since the original Beetle was phased out for the Golf in 1974.

Around 200,000 cars a year will be sold in Europe, badged as Volkswagens, Seats and Skodas. Developing markets such as Russia and India will make up a significant proportion of the remaining demand.

The production model based on the Up! concept will be cheap to buy and run, with three-door versions expected to cost around £6000.