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Volkswagen’s new strategy in China

A recent article from the Automotive Business Review revealed that Volkswagen Group China is now aiming for higher sales this year of 900,000 vehicles.

The company declares that it reached a new sales record for the first nine months as it works together with Shanghai Volkswagen and FAW-Volkswagen.

According to the report, Volkswagen vehicles delivered in China mainland and Hong Kong increased by 30.2% to 684,786 units. Sales include the Volkswagen brand which amounted to 594,270. Meanwhile, Audi was able to deliver 76,168 vehicles. Skoda, on the other hand, sold 14,094 vehicles.

With the recent satisfactory sales, Shanghai Volkswagen and FAW Volkswagen decided to increase vehicle production by optimizing organization and logistics. Due to the Volkswagen Group China’s (VGC) restructuring strategy “olympic program”, it experienced better productivity. Although the company does not stop there, it is currently looking for other means in preparation for future demands.

Martin Winterkorn, chairman of the board of management of Volkswagen said, “We are now targeting 900,000 vehicles in 2007. Volkswagen in China is ahead of its restructuring plan and in best condition for the challenges in the worldwide most competitive market.”

Focusing on VGC’s restructuring program, Winfried Vahland, president & CEO Volkswagen Group China, said: “Besides the outstanding sales record with a new target of 900,000 vehicles in 2007 we also achieved to increase our profitability in the third quarter faster than in the already promising first half year.”

Quotes are all from Automotive Business Review.

This entry was posted on Tuesday, October 16th, 2007 at 7:13 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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