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Shanghai VW slashes car parts
(Xinhua)
Updated: 2004-09-30 10:03
Shanghai Volkswagen Corporation declared Wednesday a price-cutting plan for
its car parts aiming to increase its market share in China.
According to the plan, hundreds of components for Passat and Polo, its two
dominant cars in China, will get large price cuts of between 25 and 80 percent
starting Oct. 1.
The price adjustment "will offer more preferential prices and lower the
maintenance costs for consumers" as the corporation has formed "batch-produced
ability for components" and established an "after-sale service network" around
the country, said a company spokesman.
The spokesman said insurance premiums and purchasing and usage costs will
also decline. As a result, the two cars will become more competitive and help
consumers regain confidence in the car market.
China's car market is price-sensitive, but experts noted that price cuts only
have short-term effects. In the long run, other factors will win out.
Shanghai Volkswagen is the top car sales company in China.
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