Foreign car producers taking control in China

August 24th, 2011 - 12:36 pm ICT by IANS  

Beijing, Aug 24 (IANS) Foreign car producers have begun taking control of their joint ventures in China and sidelining their Chinese counterparts from business partners to factory providers, a media report has said.

China Business News said the First Automobile Works-Volkswagen Co plans to establish its own logistic and sales networks, which was a key indicator of a potential takeover.

The company has already started to reassess contracts with secondary dealers in more than 30 cities.

Mercedes-Benz China is also rumoured to have started a restructuring of its sales channels.

The booming car market in China has prompted foreign car makers to consider establishing wholly-owned sales enterprises to replace old sales models.

China’s vehicle sales totalled 13.6 million units in 2009, reportedly overtaking the US as the world’s largest auto market.

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