VW: No more price cuts in China

Sunday, July 17, 2005

VW is not willing any longer to accept price cuts in China says chief executive Bernd Pischetsrieder.

"As we are at an international price level now, I don't foresee further reductions," Pischetsrieder said at a news conference to launch the China representative office of the European Automobile Manufacturers Association.

In October, Volkswagen's Chinese joint-venture, VW-FAW, which produces Audi cars in China, slashed prices by an average of some 15 percent on Audi A4 and A6 models, after having cut them by six to nine percent on its A4 series in July.

Automakers in China have been caught up in a price war this year as they try to boost flagging car sales but Pischetsrieder said Audi's price reductions were caused by substantially higher Chinese domestic prices compared with overseas markets.

Source: Business Report

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