Volkswagen bound for where-.docVIP

 PAGE \* MERGEFORMAT 22 Volkswagen bound for where? By the end of April, Chih-Hsin Chen, and Qin Huanming flew to Wolfsburg in Germany to participate in the first half of 2004, Volkswagen’s board of directors. As a Volkswagen joint venture in China, Shanghai Volkswagen and FAW-Volkswagen’s general manager, this year, both the Chinese people have been Pischetsrieder, chairman (Bernd Pischetsrieder) more warmly embraced than ever before. Volkswagen is suffering from a rare serious moment in history. In 2002, Volkswagen global sales fell 2% in 2003, despite sales growth of barely 0.3%, but net profit in 2002 but never reduced to 2.6 billion euros to 1.1 billion euros. The momentum did not seem to reduce the decline, the first two months of this year, Volkswagen’s deliveries of only 689,000, down 6% compared with same period last year. China business has saved Volkswagen. In 2003, Volkswagen sold 5 million vehicles worldwide, China has nearly 70 million vehicles sales figures for the first time surpass Germany to become Europe’s largest domestic car company’s largest market. Even more critical is the Volkswagen in 2003 for more than 80% of profit comes from China. According to a Goldman Sachs research report, the public last year, earnings per share 1.54 euros in the first half, China has contributed € 1.30. However, Chih-Hsin Chen and Qin Huanming heart should be clear, Volkswagen in China is now insufficient. While still in high-growth business, but the market share is decreasing. In 2001 50% 2002 40%, while in 2003 dropped to 32%, from the Volkswagen wants to maintain the 50% figure is more, let alone the 1980s, it had reached 90% market share. In March of this year’s Geneva Motor Show, Volkswagen directors, the manufacturing sector and China’s general affairs director Wei Zhibo (Folker Weissgerber) said that the mass decline in market share in China with production capacity of the joint venture has a lot to the limit. Indeed, the Volkswagen factory in Chin