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Volkswagen to Build New Small Car for China

14 June 2000

    China - Targeting the need for modern, economical, and reliable 
transportation, Volkswagen will introduce brand new compact car into the 
Chinese market in 2002.  This news was presented at a press conference by 
Stefan Jacoby, Vice President of the Asia-Pacific region for 
Volkswagen.  The vehicle will be launched just a half a year after the 
introduction of a similar model in Europe.

    The as-of-yet un-named car will be built by its Shanghai joint venture, and 
will join the Santana GSi, Jetta and the recently launched (in China) 
Passat B5.  VW's other compact, the Bora, is due to go into production next 
year at FAW-VW, a joint venture with First Auto Works.  No pricing or 
specifications were revealed at the press conference.

    Volkswagen AG's total investment in China had reached $2.25 billion (US) by 
the end of last year.


MJR