BizChina

German Auto giant Volkswagen Group has unveiled an ambitious strategy called "Strive to Win" to more than triple its sales in south China from 150,000 units to half a million annually, China Daily reported Monday.

Volkswagen Group China, together with its two joint ventures - Shanghai Volkswagen and FAW-Volkswagen will work to increase market share for the Volkswagen, Audi and Skoda brands, which together had 12 percent of the entire south China market last year, said the newspaper.

To even further boost that share, 20 new or upgraded models from the three brands will be launched from 2010 to 2012, according to Volkswagen Group China.

Enhancements in sales, marketing, services, products and technology will be included in the strategy for south China, which for VW plans includes the provinces of Zhejiang, Jiangxi, Fujian, Guangdong, Hainan and the Guangxi Zhuang Autonomous Region.

To achieve its ambitions target of selling half a million units annually in the region, Volkswagen Group China will attract and retain the top investors to optimize its dealer network in south China to represent its broadened product portfolio, said the newspaper
 

The situation of gas shortage has been eased, the Development and Reform Commission (NDRC), China's top economic planner, said in a statement posted on its website Monday.

A surging gas demand after the uncommon freezing weather has caused gas shortage in China's central and eastern regions, and the government is taking emergent measures to tackle this issue, Zhang Guobao, vice minister with the NDRC and director of the energy bureau, said Monday.

An additional 1 billion cubic meters of gas was in need despite the West-to-East transmission projects of natural gas had delivered 17 billion cubic meters, said Zhang.

Related departments were urged to guarantee residential and public sector gas usage, according to the statement.

The government of Wuhan, capital of Hubei Province, suspended natural gas supply to companies and taxi gas stations on November 17 to ensure stable supply to local residents. It also pay 100 yuan (14.6 U.S. dollars) daily subsidy to some 8,300 cab drivers, who have to turn to gasoline due to the gas shortage.

Gas producers were encouraged to pump at maximum rates. Daily gas output of PetroChina, the country's largest oil and gas producer, reached 182 million cubic meters from November 1 to 20, up 22 percent over the same time last year.
 

Fei Manqing realized early that a partnership with a leading global brand can be a shortcut for Chinese small business owners. Fei also entered a market that is attracting many leading multinational companies - China's booming automotive aftermarket sector.

Fei signed a contract with ExxonMobil Corp, the world's largest publicly traded oil and gas company, in 2004 to become a member of the ExxonMobil Esso Oil Change Center and then joined its Mobil 1 Car Care network in 2006.

She received hundreds of thousands of yuan to redecorate her stores, as well as management and training support from ExxonMobil.

"Now we have unbelievable monthly revenues of more than 500,000 yuan, four times the figure in 2004 before we joined hands with ExxonMobil," said Fei, general manager of Shanghai Chejie Automobile Technical Service Co, which has 60 auto service stores in Shanghai.

Like ExxonMobil, rival Shell Oil Co also is expanding its aftermarket presence in China.

Before President Barack Obama touched down in China for his three-day visit this week, the country's top banking regulator joined the ranks of those complaining about the U.S. Federal Reserve's low interest rates and the falling dollar. The combination, said Liu Mingkang, has fed speculation in stock and property markets (especially in Asia) and threatens the worldwide economic recovery.

What can China do about it? As long as the country banks on Americans to buy Chinese products, economists say, not much.

"They don’t have any credibility," said Dan Greenhaus, chief economic strategist at Miller Tabak. China has played the same game for years, keeping its currency cheap so that other countries will buy its goods. The U.S. certainly cares about what its largest creditor thinks, Greenhaus said, but has little reason to change course. A cheaper currency boosts U.S. exports, just as it does for China, and the Federal Reserve won't raise rates at the risk of choking the economy.

The two countries are effectively locked in an embrace: China buys U.S. debt and the U.S. buys China's goods. "It's a symbiotic relationship," Greenhaus said.