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Volkswagen Investing $2.7 Billion in China

Two new plants add to plans for $27 billion investment.

by on Jul.07, 2014

VW will launch the e-Golf and an assortment of other battery-based vehicles in China.

Volkswagen stoked the competitive fires today in the race to become the top auto brand in China by announcing plans to invest $2.7 billion to build two plants in the country.

The investment is in addition to the previously announced plans to plow about $27 billion into the country by 2018. VW last year nudged past archrival General Motors to become the largest automaker in China.

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“China has become our largest and most important market,” said Prof. Dr. Martin Winterkorn, chairman of VW’s board of management. “To satisfy the demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen.” (more…)

VW Plugging Into Chinese EV Market

Maker promises to invest $27 bil over 5 years.

by on Apr.20, 2014

VW will launch the e-Golf and an assortment of other battery-based vehicles in China.

With Beijing’s traffic choked roads as a backdrop, Volkswagen announced a major initiative to put tens, perhaps 100s of thousands of electric vehicles on the road in China before the end of the current decade.

VW chief executive officer Martin Winterkorn said VW and its key Chinese partners were prepared to spend as much as $27 billion in the next five years on electric vehicles in China.

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“The Volkswagen Group is once again assuming a pioneering role in China and launching the biggest initiative for e-mobility in China’s automotive history”, s said. Martin Winterkorn,

The initiative gets underway with the launch this year of the Volkswagen brand’s electric Up! and e-Golf models in China.

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VW, Ford Enjoy Strong March Sales in China

Automakers post double-digit jumps last month.

by on Apr.14, 2014

The Ford Mondeo is a strong seller in China. Ford's March sales were up 28%.

Volkswagen AG and Ford Motor Co. continued to post strong sales in China for March and the first quarter of 2014.

Ford China heads into the Beijing Auto Show with record monthly sales of 103,815 vehicles, a 28% increase over March 2013. It was the first time Ford China sales topped the 100,000 monthly sales mark for the first time. Excellent March performance brought first quarter sales up by 45%, compared to the same period last year, according to Ford.

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“We’re pleased that China’s car buyers continue to choose Ford,” said John Lawler, chairman and CEO of Ford China. “Our strong sales momentum demonstrates the success of our accelerated China growth plan and puts Ford in a great position as we get ready to showcase our full product lineup at the Beijing Auto Show.” (more…)

Volkswagen Wrests China Sales Crown from GM

German maker takes title by about 30,000 units.

by on Jan.10, 2014

VW toppled GM from the top of the sales mountain top in China this year by 30,000 units.

Volkswagen AG reached one of its major goals in 2013, selling more cars than any foreign automaker in China. In capturing the title, it outsold General Motors for the first time in eight years in China.

Volkswagen’s two joint ventures sold more than 3.19 million units for the year, the government-backed China Association of Automobile Manufacturers reported. The victory was narrow as GM sold 3.16 million units as sales of new vehicle topped 20 million units overall for the first time. VW’s victory in China also served to offset the company’s disappointment in the U.S. where its sales dropped.

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The duel between GM and VW is expected to resume this year as both companies are expecting more growth in 2014. (more…)

GM Sells More Vehicles in China than US Again

Maker sells nearly 3.2 million units, but VW expected to be No. 1.

by on Jan.08, 2014

The new Cadillac XTS gets a splashy launch during China's annual auto show. GM once again sold more vehicles in China than the U.S.

General Motors once again sold more cars in China than it did in the United States as the automaker and its Chinese partners shipped nearly 3.2 million vehicles to customers there, while predicting further growth in China during 2014.

“We expect vehicle sales to remain robust in 2014, driven by ongoing strong demand across China for personal four-wheel transportation,” said Matt Tsien, president of GM China. “GM will further expand our lineup of vehicles and services to remain in step with our customers nationwide.”

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Supported by strong demand for all of their major brands, GM and its joint ventures sold a record 3,160,377 vehicles in China in 2013. Sales increased 11.4% from 2012. GM sold an average of one vehicle every 10 seconds and almost 9,000 each day in China. By comparison, GM sold a total of 2,786,078 vehicles in the U.S. last year. (more…)

New Boss for GM China

Tsien to be first Asian exec to oversee booming Chinese operations.

by on Dec.02, 2013

Matt Tsien becomes the first Asian chief of GM's huge Chinese operations.

Locked in a battle for domination in what has become the world’s largest automotive market, General Motors is shaking up its top Chinese management team.

Significantly, Matthew Tsien becomes the first executive of Asian heritage to run GM’s rapidly expanding empire in China – which generated more sales last year than the maker’s core U.S. operations.

A 37-year GM veteran, Tsien has clocked a wide range of assignments in markets as diverse as Germany and Australia, but he has also put in a significant amount of time in China where he has most recently been serving as vice president of Planning and Program Management for GM China and GM Consolidated International Operations and Strategic Alliances for China.

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In his new role, Tsien will succeed Bob Socia, who has announced he will retire on January 1.  Tsien will become a member of the GM Executive Operations Committee, reporting to General Motors Chairman and CEO Dan Akerson, which underscores the importance GM puts on the China market.

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Volkswagen Likely Bringing Budget Brand to China in 2014

Maker working on cost while ensuring safety of vehicle.

by on Nov.26, 2013

VW's Martin Winterkorn said earlier this year the company plans to have a budget brand for China.

Volkswagen looks to have its “budget” brand ready to roll next year in China with other markets possibly getting variants of the vehicles.

The German maker recently reiterated its plans to bring a lower-cost, localized brand to China: a strategy similar to other foreign automakers in the country.

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During the North American International Auto Show in January CEO Martin Winterkorn said VW would be ready to make its intentions known by the end of the year, but VW brand development boss Dr. Heinz-Jakob Neusser has said in recent reports that the company is still doing its homework in a budget lineup for China. (more…)

Volkswagen Rides U.S., China Sales to Operational Profit Increase

Poor European sales, other expenditures crush net income.

by on Oct.30, 2013

VW's Martin Winterkorn said the company's goals for the year remain unchanged despite difficulties in Europe.

Volkswagen AG rode U.S. and China sales to a 20% increase in operational profits in the third quarter despite a 3.8% drop in revenue. However, the company’s net profit dropped to $2.6 billion (1.9 billion euros) from $15.6 billion (11.3 billion euros).

Operational profits, which are profits before taxes and interest, rose to $3.8 billion (2.78 billion euros) from 2.32 billion euros.

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Group deliveries increased by 4.8% to 7.2 million vehicles worldwide. The Group’s share of the passenger car market rose year-on-year to 12.7% from 12.6%. (more…)

GM, VW Battle for Dominance in China

Chinese market regains momentum after showing signs of a slump.

by on Oct.14, 2013

VW is well established in China's Pacific Crescent - but now it wants to target emerging regions of the country to maintain its growth.

Volkswagen AG and General Motors are locked in a bitter duel over sales leadership in China with the edge going to VW during the first nine months of the year.

With China now the world’s largest automotive market, dominance means more than bragging rights. GM already sells more vehicles in the populous Asian nation than in the U.S., and China promises to be a major factor in the bottom line results of most automotive manufacturers going forward.

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VW’s sales in China for the first nine months of 2013 rose 18% to 2.35 million cars and sport-utility vehicles through the end of September. The maker of Volkswagen, Audi and Porsche vehicles is relying on growth in China to offset slumping demand in Europe, where sales are set to drop for a sixth straight year, and reach its goal of overtaking both GM and Toyota to become the world’s largest automaker.

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Battling to Maintain Sales Lead, VW Heads to Undeveloped China

New plant in Xinjiang is maker’s 102nd worldwide.

by on Aug.30, 2013

VW is well established in China's Pacific Crescent - but now it wants to target emerging regions of the country.

Pushing to maintain its long-time lead in what is now the world’s largest market, Volkswagen is looking to boost production capacity while targeting regions of China only beginning to feel the benefits of the country’s rapid economic boom.

The new VW plant in western Xinjiang Province is home to a number of so-called Level 3, 4 and 5 cities that each have more than a million residents — but which have yet to experience the huge demand for cars experienced by Pacific Coast cities like Beijing and Shanghai.

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“There is today already a clear trend westward, while growth momentum in the east of the country has to some extent returned to normal. Volkswagen has taken this trend into consideration by building the production plant in Urumqi,” the provincial capital, said Jochem Heizmann, chief executive officer and president of Volkswagen Group China.

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