VW: Plannig big offensive in China

Wednesday, October 26, 2005

VW: Plannig big offensive in China

According to "The Car Connection" VW is planning a big offensive in China.

Volkswagen will seek to reverse its downturn on the China market with the introduction, starting next month, of up to twelve new models. The German automaker has seen its share of China sales decline to 18 percent despite being partnered there with two of the strongest domestic automakers - Shanghai Motors and FAW.

Volkswagen put the finishing touches on its China-market plans after declaring it would not be hampered by the fact its Audi division and Phaeton super-sedan compete with Porsche AG, which has purchased an 18.5-percent equity in Volkswagen AG.

Volkswagen was one of the first competitors from abroad to establish a significant presence in China, dating back to 1984. Virtually all vehicles built by VW are offered in China, ranging from the Audi A8 sedan to the entry-level VW Polo and Golf. Volkswagen's new strategy is called the "Olympic program," named after Beijing's hosting of the Olympic summer games in 2008, when the Volkswagen new-model assault is scheduled to end.