Volkswagen's China ventures July sales up 53 pct

SHANGHAI, Aug 2, 2004; Reuters reported that German auto giant Volkswagen AG's two Chinese car-making joint ventures sold 52.8 percent more units in July from June, as sales rebounded on price cuts made to ward off stiff competition from General Motors.

Volkswagen's venture with First Automotive Works in the northeastern Chinese city of Changchun said on Monday it sold 22,155 cars in July, or 73.3 percent more than in June.

Together with earlier figures from the Shanghai VW plant, the two ventures sold 50,215 cars in July. Sales in June for both ventures had slipped 22.7 percent on May.

Volkswagen cut prices by up to 11.7 percent in June, following an 11 percent cut made by General Motors Corp in May.

Overall car sales in China fell for the third straight month in June, as Beijing's efforts to rein in the economy and reduce the number of auto loans available kept buyers at bay, helping prompt a new round of price cuts.