Yang Meihong: No plan yet to Introduce SEAT

Editor's Note: The Media Day of the 7th China (Guangzhou) International Automobile Exhibition officially kicked off on November 23 2009. On that day there were more than 50 press conferences and over 70 new models made their debut with 32 concept cars on the show. The full-scale activities propelled the auto show to reach the peak. The major brands from home and abroad are equipped with the most complete lineups to deal with the "campaign". Nearly 60 top executives from different automakers received the exclusive interviews with Auto.sohu.com in the live studio at Guangzhou International Auto Show. Sohu Auto offered an extensive coverage about the auto show, automakers and various models. Following is the interview with Yang Meihong, the Director of Public Relations and Communication Department of Volkswagen (China) Investment Co., Ltd.

Yang Meihong, the Director of Public Relations and Communication Department of Volkswagen (China)

　　The introduction of Seat is just a matter of time.

Sohu Auto: Hello everyone. Here is the Sohu Auto Live Studio in the 7th China (Guangzhou) International Automobile Exhibition. Today we will hold an interview with Director Yang Meihong, who is in charge of the Public Relations and Communication Department of Volkswagen (China) Investment Co., Ltd. Director Yang, would you like to tell us something about Volkswagen's participation in this year's exhibition?

Yang Meihong: Hello everyone. I am so glad to have a talk with Auto.sohu.com in the live studio. I would like to share something about Guangzhou Auto Show with you. First of all, I want to introduce some new models which were released during the exhibition. In terms of scale VW has the largest platform among all the exhibitors. The showing stage covers an area of more than three thousand square meters. The new models are unparalleled. In the stage of FAW-Volkswagen, you can see the Golf GTI which will be put into production soon. Shanghai Volkswagen shows Tiguan, a new model which will make its debut soon. Audi has released Q5 in southern China market. Last night we released the strategy of Volkswagen aimed at southern China market. The management of top five brands took part in the auto show and brought more than 30 models to the exhibition.

So online friends of Auto.sohu.com, if you have the opportunity to visit the site of the 7th China (Guangzhou) International Automobile, you will be shocked since the show is really impressive.

Sohu Auto: When we talk about the news of Guangzhou Auto show, the first reaction of several media agencies may be that Volkswagen will release its strategy for the southern China. Our online friends may pay more attention to the models produced by Volkswagen. For example, will Seat take the opportunity of southern China strategy to enter the Chinese market?

Yang Meihong: Actually that is just a rumor. Volkswagen has not decided to introduce Seat into China. As to the introduction of Seat to southern China market, Volkswagen has not determined either. But we have indeed conducted some consumer surveys about several products of Seat. The consumers in southern China gave a high mark in the survey. I know that people living in the south must have preferences for the products of Seat. Seat will enter the Chinese market sooner or later. It is just a matter of time. Our concern is about when to introduce Seat into China. However, we have not made a decision on this issue.

　　Strategic objectives of southern market: Dealerships are to be doubled with sales tripled.

Sohu Auto: On November 22 Volkswagen announced its strategy for southern China market. Would you like to give us a detailed interpretation of the strategy?

Yang Meihong: There are layers of meaning in Volkswagen's strategy for the market of southern China. In addition to specific goals, we have elaborated on specific targets last night. In terms of the multiple dimensions, we can find some new phenomena. It is first time that Volkswagen expressed its confidence about the market of southern China and the commitment for consumers. Shanghai Volkswagen and FAW-Volkswagen and the managements of both companies jointly took part in the auto show for the first time. Volkswagen has not ever shown so many products on the stage before. The executives from FAW-Volkswagen and Shanghai Volkswagen jointly announced the strategy for the market of southern China. All of these things are totally new.

We divide the strategy into several major sections. One of the most important aspects is about the new products. In the next three years, Volkswagen will put 20 new models on the market and majority of the new models are aimed at consumers living in the south of China. The coverage of dealership network should be balanced and the amount of dealers should be doubled. Regarding the sales we hope that the volume should be tripled on the basis of current sales. Our performance in southern China is not that satisfactory. We aspire to pull up the sales in southern China to the national average level. These are our major sections.

Sohu Auto:It was reported that Volkswagen was looking for a partner in the field of new-energy batteries. Has Volkswagen found the partner yet? Does Volkswagen have any specific plan about new energy?

Yang Meihong: In the spring of 2009 we have held press conference to announce the Volkswagen would form partnership with BYD. As to the electric vehicles, Volkswagen is in the R&D period. We hope that some electric models should make their debut in as early as Shanghai Expo in 2010. We have to tackle some technological problems. Now the price of electric cars is still too high. In this way we cannot achieve the goal to save energy and reduce emission.

The second problem is the issue of security, especially the safety of batteries. The third problem is whether the power generation process is clean or not. We hope that those problems should be solved. However, at present we have not achieved that goal yet. There is still potential in the traditional internal combustion engine. The TSI + DSG of Volkswagen can save more than 20% fuels, which is a considerable achievement. And the usage of TSI and DSG will not increase the cost. For example, Sagitar and Golf 6 are equipped with TSI engines. We will gradually equip all the models with TSI engines. On one hand, consumers will enjoy a comfortable journey. On the other hand, the goal of saving energy and cutting emission will be realized.

Sohu Auto: In the field of new energy, which kind of cooperation will Volkswagen adopt with BYD? Will the two enterprises establish a joint venture?

Yang Meihong: We have not reached that step yet. That issue depends on our partners. For example, we have to know whether SAIC and FAW Groups have such desires.

Sohu Auto: During the Olympic Games we are deeply impressed with the Green Team of Volkswagen. Would you like to share some outstanding experiences about social responsibility in 2009 with us?

Yang Meihong: As to the automotive field, we have been working in two major directions. We are producing automotive products and safety, especially the traffic safety, is a major concern. We have responsibility to improve everyone's awareness of safety. Therefore Volkswagen has introduced a series of TV programs about the issue of safety. In each 5-minute set, we will talk about one to two points related to traffic safety.

For example, some people may forget to use the seat belts. So we will remind them of the importance of seat belts in the programs. Different people should follow different methods to tighten their seat belts. Regarding the elder and pregnant women, we tell them how to use the seat belts. After watching these TV programs, I found there were many hidden dangers which I had not realized before. I thought I did well, but I know that I have to pay more attention to the issue of traffic safety. We are offering some educational suggestions to the public to tell people how to do the safety work better. Sohu.com has helped Volkswagen to promote those education programs. And users can watch or download the videos.

We also organized some interactive activities. On June 1 we brought some cartoon programs about traffic safety to schools. We taught the children how to protect themselves when they were playing or sitting in the car. Especially when a driver reserves his car, he may not be able to notice a little kid in the rear-view mirror. We must pay more attention to these things. What should children do to protect themselves? How should parents protect their children? Many people like to enfold the child in the arms and sit in the front seat. That is not a correct choice.

We want to tell people why it is a wrong practice through the programs. By the videos we may help people know what the hazards and consequences are. Basically the main traffic accidents were caused by people. Due to people's weak sense of safety, many problems have emerged. Volkswagen has been working on this project for three years to shoulder its social responsibility. There is another example. Volkswagen has conducted some environmental and educational projects with the theme of green vehicles and envisioning the future. There are many sub-projects. One of them is that experts will hold lectures about environmental protection across the country. There are different themes each year and the theme of 2008 is about Olympic Games. This year the experts went to the region of five major freshwater lakes to talk with the children living near the lake. The experts talked about the habitats of birds. Volkswagen has been advocating the concepts of environmental protection.

Of course I did not mean that our corporation failed to protect environment. Our own factories have to meet international environmental standards for certification in the aspect of environment. We are dealing with the underground water produced by the factories. You cannot say that we destroyed the environment after the factories were built. It is an unacceptable statement. For example, every TSI engine has to receive a Turn-On test. Volkswagen has to make sure that the engine is qualified by lighting fire. In the past smoke caused by fire was harmful to the environment and now we are using the electronic and cooled methods without any pollution. In fact the updated tools can save energy as well. There are many environmental-friendly aspects during the production process.

　　Volkswagen (China) will hit the sales target of 1.4 million.

Sohu Auto: What about Volkswagen's sales in 2009? How many sales do you expect for next year?

Yang Meihong: This year the automotive market is very hot. Not long ago our total production volume has reached ten million. The whole market is very good and Volkswagen has done a great job in 2009. However, the pressure of capacity has emerged and we are sorry that in some cases we failed to deliver the cars to the consumers as soon as possible. In the first ten months of 2009, the sales of Volkswagen totaled 1.16 million and we are working towards the target of 1.4 million. We hope that we should achieve the goal. In 2009 the car market developed with an increase of 40% to 50%, indicating that the market may be a little bit overheated. This situation will bring a lot of problems to enterprises which may fail to deal with many issues with limited time and energy. The accumulation of problems is not a good thing.

In addition, with a non-stop expansion employees cannot start working immediately since the training is necessary. The training work will take time as well. In 2010 we hope the pace of development should slow down a little with an annual increase of 10% to 15%. In such an ideal range automakers can achieve the sound, solid and sustainable development.

Sohu Auto: In 2009 the relatively common problem for automakers is the issue of capacity. What about the capacity condition of Volkswagen? Do you have any specific expansion plan in the future?

Wang Meihong: As to the capacity problem, Volkswagen has announced to invest four billion euros in Chinese market in September and half of the investment will be used to expand Volkswagen's plants in Nanjing and Chengdu. It should be said that production capacity has been released.

Sohu Auto: Has Volkswagen determined the sales target of 2010?

Yang Meihong: We will not release the next year's sales objectives in advance. We hope that there should be 10% to 15% growth. For Volkswagen the growth should not be less than the average level of market.

Sohu Auto: In 7th China (Guangzhou) International Automobile Exhibition Volkswagen announced Tiguan's Chinese name. We are concerned about the NMS model. When will it enter Chinese market? Does Volkswagen have any options about the name of NMS model?

Yang Meihong: No. We need to wait for some time. I have seen the model and it is very beautiful. We can say it is a very high-end car. I believe that consumers will love the NMS.

Sohu Auto: Since the time is limited, the exclusive interview has to come to an end. Thank you! (Translator: Qinghua/Hanxin)

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