Why was such a success of Volkswagen in China, while other companies like U.S. AMC Jeep Corporation does not?

Shanghai Volkswagen is a joint venture between the German Volkswagen AG and a consortium of Chinese partners. The 25-year agreement signed by the partners in the middle of the 1980s provided by equity 50% of Volkswagen AG in the company. In 2001 this cooperation was the most successful automobile company in China. Attempts by the U.S. AMC Jeep Corporation and other manufacturers Car no. While other companies are attracted by the potential swhift, becomes huge because of the large Chinese population of 1.2 million people (indeed, only a very small percentage of customers would be), Volkswagen built the business gradually over the years. In 2001, market share aachieved than 50% as a result of the introduction of "hot" models and ensure reliable service. However, a large amount of effort required to develop this market.

Here is a recent article that explains the strategy of Volkswagen to sell its cars in Japan: "With one eye on the car of the D1 luxury coming, Volkswagen Group Japan KK will pass a strong [yen] 1.2 billion, or $ 10 million at current exchange rates, over three months to sell the new Passat. Japan expects to sell 1000 VW Passat in the rest of this year and 5,000 in 2002. In its marketing launch costs come to $ 1666 a car. “ Volkswagen is serious about making a success of the new Passat, VW Japan,''said President Tsutomu Umeno. The implementation objectives, ironically, to balance the success of the VW Golf in Japan. Last year, the Golf accounted for roughly half of VW's sales in Japan of 58,481. In Japan, “ Volkswagen is known of robust, practical cars, golf, small cars, Golf, German engineering and golf carts,''said Martin Biswurm, general manager of marketing VW Japan. “ Our brand has been so influenced by the Golf that some customers find it difficult to associate a Volkswagen with a bigger car.''With the high level D1, due to arrive in Japan after 2002, VW has to push its brand image above the Golf. “ The current Passat is almost absent in the market Japanese Biswurm''he said. Although the Passat has been sold in Japan since 1996, “ people do not know it exists,''he said. Research has shown that spontaneous recall of Japanese consumers Passat name is 2 percent. Japan expects to sell 3500 VW Passat old and new in 2001. The budget launch Passat is slightly less than the budgets of launching rival Mercedes-Benz and BMW in Japan, and similar to Japanese automakers amount spent to launch luxury cars in its home market, Biswurm said. VW Japan does not have to seek extra money for the launch of the Passat. Instead of spending their usual marketing funds year-end incentives to meet sales goals, VW Japan that the money saved for the Passat. On October 30, VW Japan started selling three versions the Passat, a 2.3-liter V-5, from [yen] 3.49 million ($ 29,100), a V-6, and a V-6 with all-wheel drive system 4motion. All versions come in sedan and wagon. Sales are expected to split 7-to-3 between the carriages and automobiles. Next year, VW Japan to add a W-12 to its line Passat. "

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