Volkswagen plans more JVs

Volkswagen plans more JVs

SINGAPORE (DPA): Volkswagen Financial Services AG (VFS) plans to set up joint ventures in China, Taiwan and Australia in addition to a tie-up with a Singapore motor group, it was reported on Friday.

Norbert Massfeller, chairman of Europe's largest car financing company, said VFS is linking up with the local partners of its two groups in China.

Next will be Taiwan and Australia. "We will go to all the markets where Volkswagen products are sold," Massfeller said.

VFS and Group Exklusiv, the Singapore distributor of VW and Renault vehicles, signed an agreement on Thursday setting up a new entity, VW Financial Services Singapore.

Volkswagen is the majority partner with a 51 per cent stake.

"The new company will go for multi-branding and not limit itself to vehicles from the two manufacturers," Massfeller told journalists.

The Singapore venture follows a VFS foray into Thailand, tying up with the Yontrakit Group, which assembles and distributes VWs, Audis, Seats and other marques.