VW to invest $2.17b in Asia in next five years
VW to invest $2.17b in Asia in next five years
Agence France-Presse, Singapore
Europe's leading car-maker Volkswagen said Thursday it would
invest more than 2.5 billion euros (US$2.17 billion) in the Asia-
Pacific region in the next five years, after sales rose 7.2
percent last year to outpace world growth.
The German automaker said it would continue to ride on the
potentials of the expanding market in China to boost sales this
year and increase the region's contribution to the company's
global sales from the current 9.0 percent to double digits.
Robert Buchelhofer, Volkswagen's president for the Asia-
Pacific, said total investment in the region in the next five
years should be more than 2.5 billion euros.
In a news briefing here, the company said 2001 group sales in
the region totaled 461,000 units, up 7.2 percent from 430,000
units a year earlier, giving Volkswagen a 5.5 percent market
share.
Its rate of growth was faster than that of the global market,
which expanded only 4.5 percent last year due to the U.S.-led
economic slowdown.
Over the past 10 years, Volkswagen sales in the region
quadrupled from 93,000 units in 1991.
Buchelhofer said at the news conference China's entry into the
World Trade Organization (WTO) "will invigorate our sales in the
country" and bolster its market share in the region.
He said Volkswagen plans to strengthen its presence in China
by increasing the concentration of manufacturers, reforming the
supplier industry, improving its sales and service networks, and
introducing new models.
"We expect China to develop as one of the major economic
players in the region," he said. "As undisputed market leader
with more than 50 percent market share (in China), the Volkswagen
Group achieved a volume increase of almost 7.0 percent in the
past year."
After launching the Bora for middle class buyers in China in
December, Volkswagen plans to introduce a new version of the
compact Polo this year and another in 2003.
Despite the recession in Japan, the Volkswagen Group increased
its sales by 6.0 percent to 70,000 units for a 27 percent share
of the market for imported cars.
Buchelhofer described Australia as a "strategic market with a
great potential." After selling a record 10,000 cars in 2001, up
nearly 40 percent from the previous year, Volkswagen plans to
double this to 20,000 in the medium term.
He said Thailand was a "potential base for Southeast Asia"
leveraging on its partnership with the local firm Yontrakit. The
joint venture has assembled 1,400 Passat and Audi A6 models for
the Thai market.
India is another potential market, Buchelhofer said.