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Volkswagen to Invest 1.6 Billion Euros in China

The German automobile company, Volkswagen, will invest 1.6 billion Euros (about 12.07 billion yuan),into the Chinese market in the coming five years, about 87 percent of its total input in Asia-Pacific Region.

The investment will mainly be used to develop new products,

enlarge the sales and service network, and to optimize purchasing procedures.

Volkswagen sales in China rose to 336,000 in year 2000 from 215,000 in the previous year to take up 54 percent of the market share in China.

It is learnt that upon China's entry into the WTO, Volkswagen will introduce new car models,including BORA that will be introduced in August by the company in Changchun in northeast China and POLO by the one in Shanghai.

Meanwhile, Volkswagen is merging its auto parts producers in

China into its global purchasing system.

The largest car producer in Europe, Volkswagen sold a total of five million cars around the world last year.

(21dnn 03/05/2001)

In This Series

China Uses More Overseas Investment in 2000

Northeast China City to Boost Auto Production

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