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.June 16, 2004
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This Week:

• Nissan Qashqai Concept Wins European Design Award

• New Sophisticated Ford Focus Concept

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• Maybach Debuts in Mainland China

• Toyota's Indiana Plant Celebrates The Production Of Its One-Millionth Vehicle

• Strong Growth And Expanding Business Spur BMW Financial Services - Relocation Plans

• World's Cleanest, Most Fuel-Efficient SUV, 2005 Ford Escape Hybrid Priced Under $27,000

• "Follow your own star." - Christina Aguilera says an exclusive "Hello" to the new Mercedes-Benz A-Class

• Canton Begins Production of Altima Sedan

• Volkswagen achieves major growth in the Asia-Pacific region

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Volkswagen achieves major growth in the Asia-Pacific region

Priority on sustainable and earnings-oriented development of business

Photo: VW
 

China

"To strengthen our position on the Chinese market we will consistently increase the share of our models produced directly in China, thus minimising the effect of exchange rates on our business in China", said Dr Folker Weißgerber, Member of the Volkswagen AG Board of Management with responsibility for the Group's business in China. He went on to say that Volkswagen had bundled its activities in China with the formation of Volkswagen Group China, which had been headed by a management team of six since May 2004. This had created the right conditions to use synergies in areas such as the development of Chinese product features.

Last year the Volkswagen Group increased sales in China by 36 percent to 697 000 (2002: 513 000) vehicles and was the unchallenged leading manufacturer with a market share of 30.8 percent. For the Group China is the second largest single market worldwide.

Shanghai Volkswagen (SVW) delivered 396 000 (2002: 302 000) vehicles last year, thus increasing sales by 31 percent. All models in the joint venture's range contributed to this growth. Last year SVW began production of the sedan version of the Polo and the Gol. As well as for the local market, SVW has been producing Polo sedan models for the Australian market since November 2003 at a medium-term volume of 600 vehicles per year.

FAW Volkswagen, Changchun increased sales by 43 percent to 298 000 (2002: 208 000) vehicles. All models produced in Changchun, these being the Jetta, Bora and Audi A6 and also the newly launched Golf and the Audi A4, contributed to this positive result.

This year Volkswagen will add the Touran to its product range, to be followed next year by the delivery van and the new Audi A6. Volkswagen is expecting considerable rates of growth on the Chinese car market over the next few years. At the current exchange rate the two joint ventures will invest some 5.3 billion euros by 2008 in the phased expansion of capacity to a total of 1.6 million vehicles.

Financial Services

Volkswagen is the first European carmaker in China to be granted approval to receive an operating license for motor vehicle related financial services. This gives the Group the ability to offer its customers finance for vehicles and in so doing consolidate its position in the market. Volkswagen Finance (China), a wholly owned subsidiary of Volkswagen Financial Services AG, will initially concentrate on loan finance. The aim is to support sales of Volkswagen Group products via the contract dealerships of its joint venture sales company.

Japan

The Volkswagen Group has been the market leader for import vehicles in Japan for four successive years. Last year the company increased its market share to 28.5 (2002: 28) percent. In an overall declining market the Group delivered 68 500 (2002: 70 900) vehicles to customers.

Volkswagen is set to further strengthen its position as the number one on the import market in Japan with the Touran and the new Golf launched this year and the new Audi A6 due to go on sale at the end of the year. The Multivan will follow as the next new vehicle in Japan in early 2005.

Southeast Asia and the Pacific area

The company will continue to strengthen its footing in these markets with the launch of new products and increase sales in southeast Asia and the Pacific area. The new Volkswagen Golf, due to be launched in the southeast Asian and Pacific markets over the next few months, will play a major role in this. The Phaeton and the new Audi A6 will also support growth in this region.

The Southeast Asia and Pacific area includes all countries of the Asia-Pacific region without China and Japan. The main markets are Australia, Taiwan, New Zealand, Thailand, and Korea. In 2003 Volkswagen Group achieved record sales in this region for the fourth year in succession. The Group increased deliveries by 11.5 percent to 41 700 (2002: 37 400) vehicles.

(June 10, 2004)