Volkswagen AG plans to launch sales of the Phideon, a new premium sedan unveiled last week at the Geneva auto show, in China in the third quarter.

 

The Phideon is the first Volkswagen-brand sedan to be based on the VW Group's modular platform toolkit for vehicles with longitudinally mounted engines. The car, which will be positioned above the Passat sedan, will be sold only in China.

 

The Phideon was developed in Germany with help from SAIC Volkswagen, its Chinese joint venture.

 

The flagship Phideon is powered by a 3.0-liter turbocharged V-6 engine that generates 296 hp and 347 pounds-feet of torque. The car features Volkswagen's 4Motion all-wheel-drive system. Entry-level models will get a 2.0-liter turbocharged four-cylinder engine and front-wheel drive.

 

Volkswagen has struggled in China, but the automaker shows no sign of hedging its bets in its biggest global market.

 

Last year, deliveries fell 3.5 percent to 3.55 million vehicles, allowing General Motors to overtake it as China's largest foreign automaker.

 

But Volkswagen plans to invest more than 4 billion euros (29 billion yuan) in China this year, as its investment in new models is spared from cost-cutting in other regions.