The new Volkswagen Passat was introduced during a launching ceremony in Potsdam today.

Volkswagen is steering the Passat upscale, aiming to lift its No.2 selling model clear of a struggling market for mid-priced cars without alienating its core family customers. At about 26,000 euros ($35,500), it will be priced only slightly above the current version, a company source said, but come in below BMW's 3-Series at 29,350 euros and the Mercedes-Benz C-Class at 33,558 euros.

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