Volkswagen eyes top position in Chinese market

German automaker Volkswagen AG would fight for its dominant position in the promising Chinese market by introducing new models, its chairman Bernd Pischetsrieder said Tuesday.

Pischetsrieder made the remark at the inauguration of a new factory in the northeastern Chinese city of Changchun, which was attended by Chinese Vice Premier Zen Peiyan and visiting German Chancellor Gerhard Schroeder.

The plant, which is owned by Volkswagen and its Chinese partner First Automotive Works (FAW), will cost about 792 million euros (US$1.06 billion).

It was designed with an annual production capacity of 330,000 cars and is expected to double FAW-Volkswagen's annual production capacity to 660,000 cars, surpassing that of Volkswagen's another venture with Shanghai Automotive Industry Corp. (SAIC).

The plant is equipped with a PQ35 platform, the most advanced platform for fifth-generation A-class cars. It will produce the light utility Caddy vehicle from next year.

FAW and Volkswagen are also building a new engine plant in Dalian City on China's northeastern coast, the German company said without disclosing the investment.

Volkswagen, China's long-standing top automaker through its ventures, has seen its market share drop from 40 percent to less than 30 percent due to fierce competitions and a slowdown in the sector this year.

The Changchun venture's October sales rose 9.7 percent month on month and 16.4 percent year on year to 25,755 units.

Source: Shenzhen Daily-Agencies