Did I Say VW Was On A Death March? I Meant They're Almost At The Finish Line

From Motor Authority:

Volkswagen’s joint-venture with China’s Shanghai Auto will spawn a new car that will eventually go on sale in North America. The new model will mark the first time that VW’s Chinese partner will help develop a vehicle targeted at a global market, Reuters Reports.

So.

A brand that for the past 10 years has been dealing with quality issues has decided to outsource production of a vehicle to China.

Perhaps they saw a video of the Brilliance BS6 and decided they wanted such materials and craftmanship in their own vehicles.

On what level does this make sense? To save money? Perhaps. But doesn't this fly in the face of VW moving upmarket with their brand in terms of perception and price?