GM are not going to let VW take the leadership so easily, you will see more models from both marques and possibly more discounting.
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25 years of Volkswagen in China
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The signing of a trial assembly contract on June 8, 1982 marked the beginning of the Volkswagen Group’s involvement in China.
Wolfsburg, 08 June 2007 - 25 years ago today, Volkswagen began gradually establishing production facilities in the Far East’s most important market of the future. With over 700,000 vehicles produced, the joint ventures Volkswagen Shanghai and FAW-Volkswagen established under these plans secure the Volkswagen Group’s market leadership in China.
Corporate policy at Volkswagenwerk AG in the 1980s concentrated on the development of new sales markets. While exports to the industrialized nations of Western Europe stagnated, new opportunities were opening up in Asia. The People’s Republic of China in particular, with its vast resources, its low level of motorization and its nascent automotive industry, offered excellent options for the future. The government in Peking set the framework for possible cooperation under China’s planned economy, backing joint ventures with the Western investor with a view to benefiting from the engineering know-how and the financial strength of the Wolfsburg-based automaker. The trial assembly contract laid the foundation for the German-Sino success story, and the establishment of "Shanghai Volkswagen Automotive Company, Ltd." (SVW) on February 16, 1985 marked the first milestone. As early as September 1, 1985, the Santana, the first Volkswagen model to be assembled in China, was already leaving the assembly line, and the enormous success of the vehicle spurred the development of the plant and the company.
The first phase of establishing a modern production facility in Shanghai was concluded in 1991. Given the large number of components for the Santana produced locally, the vehicle was no longer classed as an import, but considered a Volkswagen "made in China". Consequently, import restrictions on sales of this volume model no longer applied and deliveries quickly soared. Volkswagen reinforced the subsequent market leadership on February 6, 1991 by setting up a further joint venture. "FAW-Volkswagen Automotive Company, Ltd." (FAW) located in Changchun was a new factory with an initial annual production capacity of 150,000 vehicles, and production of the Jetta commenced in Changchun at the end of 1993. Rising sales were the reward for the far-sighted investment policy pursued by Europe’s largest automaker: while only 33,851 vehicles were sold in China in 1990, deliveries had increased tenfold by the year 2000.
New production capacity was built up in China to keep pace with the ongoing boom in the automotive sector on Asia’s strongest growth market. By 2003, the three production plants of Shanghai Volkswagen and the two FAW factories in Changchun had expanded sales to just under 700,000 units. Further joint ventures to produce engines in Shanghai and Dalian, gearboxes in Shanghai and vehicle components in Changchun closed the capacity gap by 2004 and raised the local content of the eleven models now produced in China. Over the last three years, Volkswagen has faced the challenge presented by the growing number of foreign automakers pushing into the Chinese market. The Volkswagen Group responded to competitive pressure by introducing attractive new models. Support for the local supplier industry and stronger integration of the Chinese joint ventures in the VW procurement alliance generated positive synergy effects, thus also realizing cost benefits.
By laying these foundations, Volkswagen reinforced its position, selling 711,186 vehicles last year. Developments show that China, as the second most important market after Germany, already plays a significant role in the future of the multiple-brand automaker from Wolfsburg.
The signing of a trial assembly contract on June 8, 1982 marked the beginning of the Volkswagen Group’s involvement in China.
Wolfsburg, 08 June 2007 - 25 years ago today, Volkswagen began gradually establishing production facilities in the Far East’s most important market of the future. With over 700,000 vehicles produced, the joint ventures Volkswagen Shanghai and FAW-Volkswagen established under these plans secure the Volkswagen Group’s market leadership in China.
Corporate policy at Volkswagenwerk AG in the 1980s concentrated on the development of new sales markets. While exports to the industrialized nations of Western Europe stagnated, new opportunities were opening up in Asia. The People’s Republic of China in particular, with its vast resources, its low level of motorization and its nascent automotive industry, offered excellent options for the future. The government in Peking set the framework for possible cooperation under China’s planned economy, backing joint ventures with the Western investor with a view to benefiting from the engineering know-how and the financial strength of the Wolfsburg-based automaker. The trial assembly contract laid the foundation for the German-Sino success story, and the establishment of "Shanghai Volkswagen Automotive Company, Ltd." (SVW) on February 16, 1985 marked the first milestone. As early as September 1, 1985, the Santana, the first Volkswagen model to be assembled in China, was already leaving the assembly line, and the enormous success of the vehicle spurred the development of the plant and the company.
The first phase of establishing a modern production facility in Shanghai was concluded in 1991. Given the large number of components for the Santana produced locally, the vehicle was no longer classed as an import, but considered a Volkswagen "made in China". Consequently, import restrictions on sales of this volume model no longer applied and deliveries quickly soared. Volkswagen reinforced the subsequent market leadership on February 6, 1991 by setting up a further joint venture. "FAW-Volkswagen Automotive Company, Ltd." (FAW) located in Changchun was a new factory with an initial annual production capacity of 150,000 vehicles, and production of the Jetta commenced in Changchun at the end of 1993. Rising sales were the reward for the far-sighted investment policy pursued by Europe’s largest automaker: while only 33,851 vehicles were sold in China in 1990, deliveries had increased tenfold by the year 2000.
New production capacity was built up in China to keep pace with the ongoing boom in the automotive sector on Asia’s strongest growth market. By 2003, the three production plants of Shanghai Volkswagen and the two FAW factories in Changchun had expanded sales to just under 700,000 units. Further joint ventures to produce engines in Shanghai and Dalian, gearboxes in Shanghai and vehicle components in Changchun closed the capacity gap by 2004 and raised the local content of the eleven models now produced in China. Over the last three years, Volkswagen has faced the challenge presented by the growing number of foreign automakers pushing into the Chinese market. The Volkswagen Group responded to competitive pressure by introducing attractive new models. Support for the local supplier industry and stronger integration of the Chinese joint ventures in the VW procurement alliance generated positive synergy effects, thus also realizing cost benefits.
By laying these foundations, Volkswagen reinforced its position, selling 711,186 vehicles last year. Developments show that China, as the second most important market after Germany, already plays a significant role in the future of the multiple-brand automaker from Wolfsburg.
Congrats VW! 
2
VW brings four new models to Beijing auto show.
Volkswagen will bring four new-brand vehicle models, including two independent vehicle models to this Beijing auto show in late April, a convertible coupe and a SUV model.
Convertible Coupe EOS:
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The first is Convertible Coupe EOS by Volkswagen. 4.41 meters long, 1.79 meters wide and 1.44 meters high, EOS is a mix of PassatB6 and Golf, while close to Cooper Convertible. But in touring performance, EOS, which is hard-top designed, is superior to Cooper Convertible both in sound insulation and body strength. In addition, the cover can be opened within 25 seconds by pressing the key on the central control console. Then a broad vision of sky comes to the four passengers.
To match hard-top cover of EOS, Volkswagen has designed a complete safety system for this model, including strong automobile body construction, standard double front seat SRS as well as specially-designed side aerocyst for forehead protection in emergency. Volkswagen noted that security measures of Convertible EOS will come into effect in 0.25 second when sensing an accident. Besides, the ESP dynamic stable system and the xenon head lamp are all standard equipment to provide the best safety.
SUV Tiguan:
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The Tiguan, named "Tuhuan" in Chinese (which means "Happy Journey"), aims to be an urban SUV, and caters to high-income customers between 25 and 40 years old. Tiguan is expected to go on the market as imported complete cars between May and August with a selling price at between RMB300,000 ($42,800) and RMB400,000, while the home-made vehicle model will be launched at the end of 2008 or early 2009, priced at between RMB250,000 and RMB350,000.
Volkswagen also brings two independent brands from FAW and SAIC.
MODEL X
Originating from the Volkswagen PQ34 platform, MODEL X is priced lower than Bora in the present market. MODEL X will possibly continue PASSAT's success. PASSAT leads the vehicle models, with its prototype Superb, while Shanghai Volkswagen has merely modified the front face. And MODEL X will probably follow this way due to the high research expense and long period of time. MODEL X will also be displayed at the auto show.
LAVIDA
Lavida of Shanghai Volkswagen, also called MODEL Y at first, is a sedan for home and commercial use. Shanghai Volkswagen Lavida is expected to be displayed at this month's Beijing auto show.
Lavida is called "mini-Phaeton" for its similarity with Volkswagen's top brand Phaeton in the front face. In fact, as U-shape big-mouth grill of Volkswagen family is widely seen, the front face like Phaeton seemed more classic and graceful. Shanghai Volkswagen said Lavida is the A-level vehicle for Shanghai Volkswagen's next generation, and is also a new-brand model launched to meet Chinese consumers'needs as part of German Volkswagen's global product strategy. Based on the German Volkswagen's global design strategy, Shanghai Volkswagen's R&D team combined world's automobile fashion designs with Chinese consumers' esthetic sense in this model's design. It can be said that Lavida is a model of high quality and will become a top vehicle in the A-level market.
Volkswagen will bring four new-brand vehicle models, including two independent vehicle models to this Beijing auto show in late April, a convertible coupe and a SUV model.
Convertible Coupe EOS:
The first is Convertible Coupe EOS by Volkswagen. 4.41 meters long, 1.79 meters wide and 1.44 meters high, EOS is a mix of PassatB6 and Golf, while close to Cooper Convertible. But in touring performance, EOS, which is hard-top designed, is superior to Cooper Convertible both in sound insulation and body strength. In addition, the cover can be opened within 25 seconds by pressing the key on the central control console. Then a broad vision of sky comes to the four passengers.
To match hard-top cover of EOS, Volkswagen has designed a complete safety system for this model, including strong automobile body construction, standard double front seat SRS as well as specially-designed side aerocyst for forehead protection in emergency. Volkswagen noted that security measures of Convertible EOS will come into effect in 0.25 second when sensing an accident. Besides, the ESP dynamic stable system and the xenon head lamp are all standard equipment to provide the best safety.
SUV Tiguan:
The Tiguan, named "Tuhuan" in Chinese (which means "Happy Journey"), aims to be an urban SUV, and caters to high-income customers between 25 and 40 years old. Tiguan is expected to go on the market as imported complete cars between May and August with a selling price at between RMB300,000 ($42,800) and RMB400,000, while the home-made vehicle model will be launched at the end of 2008 or early 2009, priced at between RMB250,000 and RMB350,000.
Volkswagen also brings two independent brands from FAW and SAIC.
MODEL X
Originating from the Volkswagen PQ34 platform, MODEL X is priced lower than Bora in the present market. MODEL X will possibly continue PASSAT's success. PASSAT leads the vehicle models, with its prototype Superb, while Shanghai Volkswagen has merely modified the front face. And MODEL X will probably follow this way due to the high research expense and long period of time. MODEL X will also be displayed at the auto show.
LAVIDA
Lavida of Shanghai Volkswagen, also called MODEL Y at first, is a sedan for home and commercial use. Shanghai Volkswagen Lavida is expected to be displayed at this month's Beijing auto show.
Lavida is called "mini-Phaeton" for its similarity with Volkswagen's top brand Phaeton in the front face. In fact, as U-shape big-mouth grill of Volkswagen family is widely seen, the front face like Phaeton seemed more classic and graceful. Shanghai Volkswagen said Lavida is the A-level vehicle for Shanghai Volkswagen's next generation, and is also a new-brand model launched to meet Chinese consumers'needs as part of German Volkswagen's global product strategy. Based on the German Volkswagen's global design strategy, Shanghai Volkswagen's R&D team combined world's automobile fashion designs with Chinese consumers' esthetic sense in this model's design. It can be said that Lavida is a model of high quality and will become a top vehicle in the A-level market.
4
Volkswagen delivers 5,000 Olympics autos to Beijing.
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http://news.chinacars.com/kuaixun/kuaixun/367138.shtml
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