Volkswagen To Sell Cheap Car in China - Sound Familiar?

FRANKFURT, Oct 7, 2002; Reuters reported that Volkswagen AG said today it had decided to introduce one of its existing small cars in China next year and hoped to sell 50,000 of those vehicles to maintain its market-leading position in the country.

"We've already made the decision," said VW board member Robert Buechelhofer on the sidelines of a conference in Frankfurt.

"If we want to have the car on the market in the first half of 2003, you can conclude that it already exists (in our product range)," he said.

He said VW would announce further details of the car, to be sold for less than 100,000 yuan ($12,080), later this year.

The most likely model for VW to sell in China would be its Gol car, which costs about $6,000 in South America.

In 2001, VW sold 360,000 cars in China but its position as the leading car maker in the country is under threat following China's recent accession to the World Trade Organisation, which is expected to open up the market to other foreign car manufacturers.

Buechelhofer said VW expected to sell over 500,000 cars in China this year. Globally the carmaker has said it plans to sell just under five million cars this year.