VW's baby 4x4 is go

Wheels24 reported earlier this year that VW is planning a "baby" Touareg but the German carmaker has always been mum on it.

Now VW's brand product strategy committee made the first official statement about this vehicle saying that the company's new compact SUV will be built at the Palmela plant in Portugal from 2007.

Production in Portugal brings cost benefits of over &Euro;1 000 per vehicle compared with production in Wolfsburg.

VW is not saying yet what they will name this SUV, but sources informed Wheels24 that VW could badge it as the "Bedouin".

The car is expected to be unveiled at either the Geneva or Paris Motor Show next year with production kicking off early in 2007.

A VWSA spokesperson told Wheels24 that there is no indication yet when this car will go on sale here. However, Wheels24 expects it to be available in South Africa late in 2007.