VW Sees German Passenger Car Market Recovery

FRANKFURT February 24, 2003;Dow Jones reports that Volkswagen AG is optimistic about a turnaround in the German passenger car market, a VW executive told investors Monday.

"We expect it to pick up in the second half of this year," said Detlef Wittig, who is responsible for the VW brand's sales and marketing.

Speaking at a Deutsche Bank conference in Frankfurt, Wittig said a slew of new models to be launched in 2003, including the compact minivan Touran, should help drive consumers to the show rooms.

Overall passenger vehicle sales worldwide are expected to remain stable at 38 million to 39 million for 2003.

Wittig said China was on track to becoming the company's most important market, after overtaking the U.S. in 2002 as the second-largest consumer of VW models behind the domestic German market.

VW expects to launch five new models in the Chinese market this year, including the Touran, Audi 4-series and the Golf.

"We're prepared for the next jump in volume in China," Wittig said.

VW, which sold 60% of its cars to Chinese government and taxi fleets in 2001, estimates the share of private consumers will rise to 65% by 2006 from 40% in 2001.

The carmaker currently dominates the Chinese market, and says it will grow faster than the overall market which is predicted to increase by 16% to 20% in 2003.

Company Web site: http://www.volkswagen.com