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Buoyed by strong performance in 2000, Volkswagen Group expects continued growth and reaffirms commitment to the Asia Pacific region in 2001.
Volkswagen AG will invest 1.84 billion Euros in the Asia Pacific in the next five years.
Volkswagen AG also achieved an unprecedented sales record and strong performance in the Asia-Pacific region in the Year 2000.
Delivering 430,000 (1999:390,682) vehicles to customers in the Asia Pacific, this represented an increase of 10 percent in sales and a 5.4 percent market share gain for Volkswagen AG in the region last year. Worldwide, the Volkswagen Group delivered more than 5 million vehicles, a record first in the company's history. With the increase of 3.9 percent from 1999 in deliveries, Volkswagen extended its global market share to an estimated 12.2 percent in 2000.
"In 2000, we witnessed the recovery of the national economies of Asia. Given the continuation of economic recovery in the next few years, we expect to see the automotive industry developing to the level it held prior to the Asian crisis," said Dr Robert Büchelhofer, Member of the Board Management of Volkswagen AG with responsibility for Sales and Marketing and responsibility for the Asia-Pacific region.
"Encouraged by the impressive performance of our brands in the region which reflects the strong identity and premium position our brands enjoy in the marketplace, Volkswagen is committed to invest 1.84 billion Euros in the Asia Pacific region in the next five years. We will continue to fortify our leadership position with new business strategies and directions for the Year 2001. We will further expand our sales and service networks, introduce new products, streamline the procurement process and reinforce our brand values."
Highlights of Volkswagen AG in 2000:
The Volkswagen brand achieved the "Best Sales Result Of Any Importer In Japan For All Time" in 2000, marking a new deliveries record of 58,481 (1999:47,179) vehicles, an increase of 24 percent from 1999 despite the country's difficult economic environment last year. In the next five years, Volkswagen sees potential to sell nearly double this number of cars.
With 14,000 deliveries, Japan is the third biggest market for the New Beetle, after the USA and Germany. Volkswagen's reputation in the Japanese automotive industry is further reinforced when the new Polo was acclaimed "RJC Car of the Year, Import 2001" by a specialist jury of the Automotive Research & Journalists Conference of Japan.
With the brands of Volkswagen, Audi, Bentley, Rolls-Royce and Lamborghini, the Volkswagen Group has increased its import market share in Japan from 21.9 percent in 1999 to its present 26.5 percent. The total sales of the Volkswagen Group went up from 53,752 cars in 1999 to 65,600 vehicles in 2000.
Retaining its position as the market leader, the Volkswagen Group saw a distinct volume increase of 6.5 percent, delivering 336,000 (1999:315,251) vehicles in 2000 and gaining a lion's share of 54 percent in China's automotive market. Shanghai Volkswagen alone delivered over 222,000 vehicles in 2000. Sales target for the next five years is 450,000 units.
There was also an impressive volume increase at 34 percent for the first time for FAW Volkswagen with more than 111,000 (1999:83,285) units delivered. Here the high demand of Audi A6 exceeded all expectations at 17,451 vehicles.
The upper range segment, the Volkswagen Passat, was the major product influencer to Volkwagen's growth in the Chinese market in 2000. In six months, over 30,000 units were sold when the stretched Chinese version, Shanghai-built Passat, was launched in the market in June 2000 where the production of the car was completely sold out.
· Key markets in South-east Asia
The South-east Asia and Pacific region serviced by Volkswagen Group Singapore achieved growth for the fourth consecutive year in 2000. Over 28 percent or 30,000 (1999:23,340) more vehicles than the previous year were delivered to customers. Within the Volkswagen Group, Audi increased its volume in the Asia-Pacific region by 18 percent with 6,800 deliveries. It plans to triples sales volume up to 90,000 vehicles within the next five years.
With 16,300 (1999:10,125) deliveries, the Volkswagen brand alone increased its volume by 61 percent.
Australia is the highest volume market leading with about 7,300 (1999:5,310) representing a 37 percent increase in Volkswagen passenger cars delivered last year.
Taiwan, South-east Asia's second biggest market, almost doubled its volume from 1999 with 4,600 (1999:2,353) units sold in 2,000.
New Zealand posted an increase of 97 percent from 1999 with 1,300 vehicles delivered in 2000.
Hong Kong and Singapore, with 750 and 880 deliveries to customers respectively also showed increases of 105 and 60 percent.
Expansion Plans and Preview of Volkswagen AG Activities in Asia Pacific in 2001:
To further increase the Japan-wide sales and improve the quality of the Volkswagen service network, an exclusive dealer network is awarded to 243 dealers who offer Volkswagen vehicles in January 2001. Operating the Audi business separately, there will also be an additional 100 exclusive Audi dealership network to be implemented at the beginning of 2001.
The two brand distinctions will further strengthen the brands and enhance the premium image of Volkswagen and Audi, which will increase the volume for both brands in the market. Volkswagen also aims to firmly establish complete product range of the Volkswagen brand in Japan and the highlights of 2001 include the new product launches of Passat and Lupo in the market.
As the market leader in China, Volkswagen will grasp the opportunities presented by liberalisation in the context of the WTO, and further expand its position.
Volkswagen Group will continue to launch new products and part of its product strategy is to use local manufacturing facilities to build competitive, world-class quality vehicles in China. Currently, the Audi A6 is built in Changchun and the Passat is built in Shanghai. In addition to the range of cars built in China, the Volkswagen Bora will be built in Changchun as from this year and the new generation Polo in Shanghai as well in 2001.
Furthermore Volkswagen will align its procurement processes to enable the joint ventures to achieve comparable world standard. Volkswagen will modernise the procurement processes and at the same time support the Chinese supplier industry in its efforts to become fit for international competition. Volkswagen will integrate the Chinese supplier industry in its global sourcing when quality, price and delivery adherence are right.
In the area of Sales and Marketing Volkswagen has set up sales joint ventures at FAW VW in Changchun and Shanghai Volkswagen. Volkswagen and Audi are continuously deploying modern marketing know-how and building up a modern dealer organisation to take account of the increasing expectations of the Chinese customers.
Volkswagen Group's own importer was set up in January 2001 in Australia to further enhance the image of the Volkswagen brand. The Group also aims to build an effective sales organisation and extend the source of business for potential volume growth in this leading market.
Recognising the long-term potential in the growing Thai automotive market and Thailand's central location for regional exporting, Volkswagen, Audi and their local partner Yontrakit decided to start local assembly in March 2000. Investing over S$8million (lOin deutschmark), a manufacturing plant was opened in Thailand to supply the local market with Volkswagen Passat and Audi A6 models.
Further strengthening its presence in the Asian markets in 2001, Volkswagen has signed agreements with new importers in Korea and Taiwan and opened new showrooms in Brunei and Philippines.
In addition to continue increasing volumes and market share in already successful countries in the Asia Pacific region, Volkswagen will push ahead with its expansion plans in Malaysia and Indonesia in 2001.
"Profiling and enhancing the Volkswagen brand continues to be of high importance across the Asia-Pacific region. The Group promises the unveiling of the new Passat and Sharan models and top-of-range engine versions of Golf and Bora in 2001. These new range of cars will further enhance the premium image of the Volkswagen brand in the Asia-Pacific region," added Dr Büchelhofer.
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