VW's Audi Forms Distribution JV With Japan's Yanase

FRANKFURT - October 21, 2002; Dow Jones reported that Volkswagen AG unit Audi AG Monday said it is forming a distribution company with Japan's Yanase & Co. Ltd. in an attempt to double car sales in Asia's largest auto market by 2007.

"To double our unit sales in Japan to 20,000 automobiles by 2007, it's necessary to strengthen the exclusive Audi-only dealership network through a joint venture with Yanase," said Dr. Georg Flandorfer, Audi's head of marketing and distribution.

Audi was confirming a recent report in the Nihon Keizai Shimbun newspaper.

The distribution network will be widened to 80 dealerships by year-end, of which 22 will belong to the new joint venture. The new firm will also take charge of Audi dealerships presently controlled by Yanase, Audi said in a statement.

In Japan Audi now has dealerships selling only its own vehicles. In Europe, Audi cars are frequently sold alongside cars produced by parent company VW.