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Article #295: Skoda to Help Boost Shanghai Volkswagen Sales

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China View reports Sino-German car Shanghai Volkswagen said the launch of
venture Shanghai Volkswagen Automobile Co Skoda is the beginning of their
is seeing Skoda, its newly launched Czech multi-brand strategy and will expand
brand, to help it lift sales in the their lineup to meet increasing customer
middle of heated competition in the demand.
second-biggest vehicle market in the The venture, which makes Volkswagen's
world. Santana, Passat, Polo, Gol and Touran,
The report says the 50-50 joint venture plans to present a new Skoda model yearly
of SAIC Motor Corp and Volkswagen AG told in the coming years, including the
China Daily that it is expecting Skoda, subcompact Fabia and mid-range Superb.
wholly owned by the German carmaker, to The company emphasized Skoda cars would
get 2.5-3 percent of China's passenger not go head-to-head with Volkswagen
car market by 2010. models as the Czech brand has its own
Although the venture did not tell how market position. This is in attempt to
many Skoda cars it expects to sell by cast out the issue on Skoda's
then, analysts said that it is a brave cannibalization of Volkswagen brand sales
plan because the Czech brand is a new in China.
entrant in China. The venture said Skoda targets buyers who
Shanghai Volkswagen claimed that it aims are "intelligent, steady-going and have a
to sell more than 30,000 Skoda Octavia taste for life and inner-strength", like
compact sedans this year. This is in lieu the lawyers, doctors, teachers, senior
of its desire to move a total of more civil servants, and other professionals.
than 400,000 cars, up from 352,000 units The firm claimed at the end of this year
last year. The Octavia, Skoda's first it will have 110 Skoda dealerships, up
China-made model, started its sale on from 80 now.
June 6. Winfried Vahland, CEO of Volkswagen Group
The venture's sales for January through China, said last September that he
June were increased by 23.1 percent to expected Skoda to be a new foundation
213,735 units. These included 3,000 along with the Volkswagen and Audi brands
Octavias, ranking it as the No. 3 to strongly establish the German group's
passenger car producer all over China leadership in China's car market.
after Volkswagen's other association with The group's China sales hiked by 24.6
FAW Corp and General Motors' emprise with percent to 431,369 cars during the first
SAIC. half of the year.
The director of Greater China Vehicle Based on industry data, sales of
Forecasts for US consultancy CSM China-made passenger cars are 2.55
Worldwide (Shanghai) Corp by the name of million units in the same period, up 26
Yale Zhang predicted that passenger car percent.
sales in China, which is comprised by The German carmaker's emprise with FAW is
sedans, sport utility vehicles and producing Volkswagen and Audi vehicles.
multi-purpose vehicles, will increase to Volkswagen is also the maker of quality
7.2 million units in 2010 from 5 million Volkswagen Rabbit parts.
that is expected to be sold this year.






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