The meeting indicated that German Volkswagen, the earliest partner in China's auto industry, has moved forward to maintain and develop China's auto market through deepening its cooperation with Shanghai's auto industry.

With a total investment of US$29.98 million, the auto sales corporation is financed by Shanghai Auto Industry Group, Volkswagen (China) Investment Co. Ltd. and Shanghai Volkswagen Co. Ltd., with their share holdings being 50 percent, 30 percent and 20 percent respectively.

A senior official from German Volkswagen and now vice-president of the new company dismissed rumors that German Volkswagen was going to buy more shares to control Shanghai Volkswagen and FAW Volkswagen, another joint venture by German Volkswagen in northeast China. He said, "Instead of holding more shares, the more important thing is to win customers' hearts."

The new company sells cars and car parts produced by Shanghai Volkswagen exclusively. The company will make use of operational ideas and successful experiences from German Volkswagen, and integrate sales networks together with after-purchase service to establish a comprehensive and high-efficiency sales-service network.

A board official said the Sino-German partners have passed the coordinating period since the new company began its trial operation last August. Average monthly sale of autos reached 20,560, 36.9 percent higher than the previous company.

(Xinhua 11/7/2000)