VW Discusses Building Passat Models in China

09/19/96

Reuters has reported that Germany's Volkswagen AG has announced that it has started negotiations to build the new version of its Passat saloon car in China. A VW spokesperson said the talks focus on the possibility of establishing a facility in Shanghai.

Germany's Manager Magazine had reports that VW is considering plans for a completion facility to assemble the Passat since its deal to assemble the VW Santana in China expires in about three years.

The magazine says that Martin Posth, chairman of Volkswagen Asia-Pacific Ltd., is under pressure to improve sales in the Asia-Pacific region. Although VW's Asia-Pacific sales through the end of July climbed 27.1 percent to 193,141 units, they are still below the 223,230 units that VW planned on.

VW, the Shanghai Automotive Investment Corporation and the Chinese National Auto Investment Corporation have been involved in the Shanghai-Volkswagen Automotive Company for 10 years. Shanghai-Volkswagen produces the Santana.

Paul Dever -- The Auto Channel