Volkswagen Group will 'Strive to Win' in South China

German Auto giant Volkswagen Group unveiled an ambitious strategy called "Strive to Win" to more than triple its sales in south China from 150,000 units to half a million annually.

The strategy was announced on the eve of the seventh China Guangzhou Automobile Exhibition, which opens to the media on Nov 23.

Volkswagen Group China, together with its two joint ventures - Shanghai Volkswagen and FAW-Volkswagen will work to increase market share for the Volkswagen, Audi and Skoda brands, which together had 12 percent of the entire south China market last year.

To even further boost that share, 20 new or upgraded models from the three brands will be launched from 2010 to 2012, according to Volkswagen Group China.

Vision

The company said it will create more value for southern China consumers and its partners, provide support to sustainable development of the area and contribute more to the realization of the company's aggressive Strategy 2018, an overarching plan to continue boosting its long-term sustainable development in China.

The auto heavyweight will also take a series of steps to upgrade its corporate image and maximize its brand value.

Enhancements in sales, marketing, services, products and technology will be included in the strategy for south China, which for VW plans includes the provinces of Zhejiang, Jiangxi, Fujian, Guangdong, Hainan and the Guangxi Zhuang autonomous region.

In sales and marketing, the company aims to achieve sustained growth and stronger market performance.

For customers and services, it will cultivate stable partnerships with joint ventures and retail partners as they work together to become the best-in-class for customer satisfaction and brand image.

In products and technology, the company will launch more innovative products and developing a rich product line with cutting-edge technologies that fit consumer needs, especially in south China.

For regional contribution, the company is committed to sustainable development and strengthening corporate and social responsibility programs.

Elaboration

In sales and marketing areas, to achieve its ambitions target of selling half a million units annually in the region, Volkswagen Group China will attract and retain the top investors to optimize its dealer network in south China to represent its broadened product portfolio.

All brands under Volkswagen Group China will strengthen their images, provide enhanced experience for all customers and establish even closer customer relations in south China.

In the areas of customers and services, all its current dealerships will be upgraded through renovation of showrooms and reception areas to provide an enhanced customer experience. China will be the first country to officially launch the new showroom standard.

For new dealership networks, Volkswagen is implementing an entirely new design concept for showrooms, which will be brighter, more transparent, energy efficient and environmentally friendly.

The three brands of Volkswagen Group are enhancing the training structure for dealers in south China to further develop individual training and bring training standards up to Volkswagen Group's international standards.

Volkswagen Group's experience in the Hong Kong special administrative region indicates that new Volkswagen products have not only had excellence in performance and manufacturing, but can lead fashion and fully meet the needs of southern consumers.

The powertrain strategy now being implemented in China will lower average fuel consumption and emissions by more than 17 percent by the end of 2009 on all models of Shanghai Volkswagen and FAW-Volkswagen.

The auto company is confident of achieving the goal of a reduction by 20 percent on all models by 2010.

Its fuel and powertrain strategies in south China will include continued reductions in fuel consumption by downsizing engines and implementing fuel efficient technologies like TSI and DSG, as well as cutting innovations like BlueMotion at Volkswagen and Greenline by Skoda.

At the same time, it is investing in R&D for future technologies including hybrid, twin-drive and electric cars.

The group is convinced that the ongoing launch of new products and technologies will meet the needs of the rapid development of the southern market and will bring valued experience to local customers and contribute to the sustainable development of the society and the environment.

In regional contribution, the company is developing more eco-friendly initiatives in south China.

Its more fuel-efficient technologies will lead to a better environment in south China as well as stronger communities.

It is also increasing local investment that will lead to creation of tens of thousands of new jobs for the people of south China.

Under the theme of "Strive to Win", Volkswagen Group China will instill new vitality in the south China market and create new values for local consumers and partners.

(China Daily 11/23/2009 page6)