Germany’s
Volkswagen is to allocate US$1.48 billion of the US$1.7 billion it plans to invest
in the Asia Pacific region over the next five years to expanding joint ventures
in Shanghai and Changchun.
Volkswagen said in Singapore that it aims to increase Asia Pacific sales by
50 percent over the next five years. The company will introduce a new model
every year in China.
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In addition to the current Audi A6 and Passat models, Volkswagen will start
assembling the Bora (Jetta) in Changchun in 2001 and manufacture a new Polo-based
‘crossover’ vehicle in Shanghai from 2002. In 2003, the Lupo will also be introduced
in China.
According to Volkswagen’s Chinese representative, the company is also planning
to build China’s newest family minicar, the A000, in Changchun. The A000, smaller
in size than the Lupo, will be on sale in 2004.
Volkswagen said that the Asia Pacific region accounted for 430,000 sales in
2000, or eight percent of the company’s total. It estimates that annual sales
in China will grow from the current 336,000 to 450,000, and plans to sell 650,000
cars a year within five years.
The company will invest US$222 million in its Japanese and Singapore operations.
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