VW to invest 1.84b euros in Asia Pacific
VW to invest 1.84b euros in Asia Pacific
SINGAPORE (AFP): German auto-maker Volkswagen AG said Tuesday
it will invest 1.84 billion euros (US$1.72 billion) in China and
the Asia-Pacific region in the next five years.
Robert Buchelhofer, the Volkswagen board member responsible
for the region, said 1.6 billion euros will be spent in China to
position the company ahead of the country's entry into the World
Trade Organization (WTO).
"We see a major opportunity for us in China with WTO,"
Buchelhofer told in a news conference in Singapore.
Japan and Australia will share the remainder of the investment
along with some Southeast Asian countries.
The Asian push by Volkswagen, whose venerable Beetle made its
first entry into Asia in 1952, comes on the back of an
"unprecedented sales record" in the region last year.
Buchelhofer said Volkswagen delivered 430,000 cars in 2000, up
10 percent from 390,682 in 1999, raising its market share to 5.4
percent. Global sales for the Volkswagen group totaled more than
five million vehicles.
"Encouraged by the impressive performance of our brands in the
region which reflects the strong identity and premium position
our brands enjoy in the marketplace, Volkswagen is committed to
invest 1.84 billion euros in the Asia Pacific region in the next
five years," Buchelhofer said.
"We will further expand our sales and service networks,
introduce new products, streamline the procurement process and
reinforce our brand values," he added, saying he did not believe
the impact of the U.S. economic slowdown on the Asia-Pacific
would be as serious as forecast.
The investment in China, where Volkswagen has manufacturing
plants in northeastern Changchun and Shanghai in the south, will
be geared towards churning out new products to meet growing
domestic demand.
Deliveries in China rose 6.5 percent to 336,000 vehicles last
year, giving Volkswagen a 54 percent share in China's automotive
market. The firm is targeting sales of 450,000 cars in China in
five years.
The high-end Passat was the main driver of growth but the
company was prepared for an expected rise in demand for compact
cars, Buchelhofer said.