Volkswagen Group China Establishes New Sales Record with 910,491 Vehicles

Beijing, 10 January 2008 – Volkswagen Group China achieved an all-time sales record with 910,491 vehicles (2006: 711,360, up 28 percent) delivered to customers in China Mainland and Hong Kong in 2007. Together with its two joint ventures Shanghai Volkswagen and FAW-Volkswagen it fostered its share in the passenger car market at 18 percent. Sales of the Volkswagen brand amounted to 780,784 (2006: 628,807, up 24 percent) including 9,067 imported vehicles. Audi delivered 101,996 vehicles to customers (2006: 81,708 up 25 percent) including 8,828 imported units. Skoda sold 27,325 (2006:660) cars, including 213 imported vehicles.

“Our outstanding performance as the result of our restructuring measures gives us the confidence that we will break the one million mark with our sales in 2008”, Dr. Winfried Vahland, President & CEO of Volkswagen Group China said. “Our growth will be supported by new models which will be introduced this year. We furthermore will focus on a growth in accordance with the environment by continuing our powertrain strategy with latest fuel saving an emission reducing engine and transmission technologies,” he added.

In 2008 Volkswagen Group China will complete its restructuring plan “Olympic Program” which had been introduced in 2005. Besides 12-14 new models it includes a clear differentiation of the products of both joint ventures, sound reduction of product costs by 40 percent, measures to increase productivity, capacity utilization and to modernize the sales and service networks. “We are in all fields on track of the program or even ahead. As partner of the Beijing 2008 Olympic Games we strive for the gold medal as most attractive car manufacturer of the Chinese market. Volkswagen Group China is prepared to continue its growth also in the coming years,” Vahland said.