Volkswagen to Streamline China Operations | Business| Economy and finance news from a German perspective | DW | 22.04.2005
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Volkswagen to Streamline China Operations

Volkswagen Group China president Brend Leissner Friday said the German carmaker will no longer slash prices on its models to boost sales, instead it will seek to cut costs by streamlining operations. Customers have complained about the prices of their cars being cut after purchase and many had demanded their money back, Leissner said at the opening of the week-long auto show in Shanghai. Such prices undermine the value of Volkswagen products, he said. Most auto companies in China are battling slowing sales growth and many of them have been forced to slash prices and cut back production, leading to reduced profitability. Volkswagen said its main focus in China this year would instead be to reduce costs by increasing cooperation between its two auto-producing joint ventures. Large savings could be gained by streamlining and combining logistics and procurement procedures, he said.

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