Competition between Shanghai VW and rivals heats up, spills into customer service fields

Carmen Lee From Gasgoo.com

Gasgoo.com (Shanghai July 11) - With manufacturers having released their performance reports for the first half of the year, Shanghai Volkswagen once again leads the pack. Despite this, FAW-VW and Shanghai GM have both been closing the gap on Shanghai VW. FAW-VW in particular has managed to place first in the monthly sales rankings for several months during the year.

According to statistics from the China Association of Automobile Manufacturers, Shanghai VW, Shanghai GM and FAW-VW sold respective totals of 940,000 vehicles, 906,000 vehicles and 823,000 vehicles since the start of the year.

Although Shanghai GM has been performing consistently in the compact market, it has not been able to compete with the new models released by Shanghai VW and FAW-VW. Both VW joint ventures have managed to exceed Shanghai GM's sales of just over 100,000 units. Shanghai GM has seen success in the midsize segment with the New Regal, New LaCrosse and Malibu all managing to bring in respectable sales.

Analysts point out that increasing competition is forcing manufacturers to not only compete in vehicle sales, but also try to one up each other in terms of customer service and consumer satisfaction. Shanghai VW was also outranked FAW-VW and Shanghai VW in J.D. Power's 2014 China Sales Satisfaction Index.

The 'German top three', Audi, BMW and Mercedes-Benz, have already begun competing in the field of sales and after sales customer service. As an example, Mercedes-Benz has already decreased the maximum repair fee for its vehicles by 50 percent. With the sheer number of drivers they possess, Shanghai VW, FAW-VW and Shanghai GM are primed to benefit greatly by ensuring maximum customer satisfaction.

 

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