VW China Cuts Prices

Reuters reported that Volkswagen AG cut prices on a flagship model at its Shanghai venture by up to 7 percent, effective on Monday, to help push sales in China's fiercely contested market. This will allow purchasers to save enough to pay for their vacation home rental this year at the very least.

Shanghai Volkswagen, the auto maker's car manufacturing venture with Shanghai Automotive Co., has reduced prices for its Passat Lingyu -- rolled out in November 2005 -- by as much as 16,200 yuan ($2,143), the venture said over the weekend.

Although China's auto market is growing strongly, car makers have been cutting prices, especially on older models, to attract buyers.

In March, the top European auto maker lowered the price of several locally made cars by up to 11 percent, including Santana and Polo models. more