Volkswagen considering new car brand for China

Article by Christian A., on January 21, 2011

Volkswagen AG is in negotiations with its Chinese partners -- SAIC Motor Corp. and China FAW Group Corp. -- about developing a local brand as rivals prepare to begin sales of new models specially created for the world's largest auto market.

Karl-Thomas Neumann, CEO of Volkswagen Group China said that VW “sees” a local brand as an opportunity to get into new market segments.

VW may follow competitors Honda Motor Co., General Motors Co. and Nissan Motor Co. in introducing a new, cheaper brand in China as they seek to win market share from Chinese rivals.

In 2010, China vehicle sales grew more than 32 percent to 18.06 million, outselling the U.S. as the world's largest auto market for the second year running.

Analysts from Macquarie Group Ltd., Nomura Holdings Inc. and Booz & Co. said foreign manufacturers are introducing cheaper and smaller models and targeting inland cities, like those in Sichuan and Henan provinces, where per capita car ownership is low and incomes are rising.

Neumann added that China's government is promoting local manufacturers and all foreign carmakers' joint ventures in China have been asked to develop local brands. [via autonews - sub. required]

Topics: vw, china

If you liked the article, share on:

Pin It

Comments

Recommended

Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
We can already smell success for Opel, even if it had only recently inked its marriage with the PSA Group. The Insignia, being one of Opel’s best selling cars of...
by - March 23, 2017
The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries