AVAG Holding poised to bring Chinese cars to Poland, other countries in Central Europe

AVAG Holding aims to be one of Europe’s top 10 dealer groups by 2010. It is Germany’s second-biggest dealer group by revenue with annual sales of about EUR 1 billion.
AVAG aims for growth of 10% a year, which will be fuelled by adding new brands and by expansion outside Germany. Volker Borkowski, who was named to succeed Albert Still as CEO in January, spoke with Automobilwoche Reporter Bettina John.

Q: AVAG put its plans for importing Chinese cars on hold last year. What does your strategy look like now?
A: I believe the Chinese market is quite capable of absorbing its own products. Export volumes won’t be as great as many expect. Our wish is for an operational market launch in 2008, but realistically it’s going to be 2011 or even 2013.

Q: AVAG generates 30% of its revenue outside Germany. Is that where you plan to expand?
A: Yes. We have built an expertise that others lack in neighbouring markets, such as Poland, Hungary, Croatia, the Czech Republic and Slovakia. We don’t want to be in the rural areas, however, because the volumes are too small. We want to be in the main cities.