Top Biz News

Volkswagen China JV aims to double sales

By Gong Zhengzheng (China Daily)
Updated: 2006-09-21 09:04

According to industry statistics, sales of all made-in-China cars surged by 31.78 per cent to 3.23 million units from January to August from a year earlier. The growth rate was up from 15 per cent last year.

FAW VW now makes Volkswagen's Jetta, Bora, Golf, Sagitar and Caddy as well as the Audi A6 and A4. The company's Audi business unit also markets imported Audi vehicles.

The venture said it will make full use of the Volkswagen Group's product platforms to further extend its line-up.

"We will launch at least one new model every year to meet growing market demand," said An Tiecheng, president of FAW VW.

According to the Volkswagen Group's China market positioning strategy announced earlier this year, FAW VW's products target customers wanting the latest cutting-edge German technology.

To differentiate itself from FAW VW, Volkswagen's venture in Shanghai produces cars with a strong lifestyle image. The Shanghai venture's existing products include the Santana, Passat, Polo, Touran and Gol. It will also start making cars with Skoda, Volkswagen's Czech unit.

"FAW VW will further increase spare parts localization of its vehicles and improve productivity to cut costs," An said.

He said the venture has transferred 1,000 non-manufacturing employees into the manufacturing area this year. It has a total staff of 10,000.

The Volkswagen Group plans to cut operational costs in China by 40 per cent by 2008, according to a plan revealed last year.