VW to expand operations by sponsoring Beijing Olympic

Shanghai, August 24 (Gasgoo.com) - German automaker Volkswagen is seeking to expand its market share in China by sponsoring the 2008 Beijing Olympic Games.

In this month, "Good Luck Beijing" tournaments, a warm-up race one year ahead of the 2008 Olympic Games is in full swing. While athletes are trying to win the medals, VW, the sponsor is also seizing the opportunity to promote its corporate image, quality in the Chinese market.

"Shanghai VW and FAW VW will donate about five thousand VW vehicles for the Beijing 2008 Olympic Games," Chen Zhixin, general manager of Shanghai VW told China Youth Daily. These cars comprise of VW, Audi and Skoda brands, Chen added, revealing that VW would pay up to $102 million for the sponsorship.

On August 8, Shanghai VW and FAW VW met each other at the One-year Countdown ceremony. They simultaneously launched the Olympic campaign: "Passat Olympic Plan" by Shanghai VW and "Run for 2008" by FAW VW.

"It's just a beginning," Chen said. He considered the Games as a good chance. Shanghai VW kicked off a program in late March when the two companies planted a tree after a VW car was sold. This symbolizes VW’s commitment to eco-protection, Chen explained.

In June 2004, Volkswagen (China) Investment Corporation (VCIC), Shanghai VW and FAW VW were appointed as Official Automobile Partner for the Beijing 2008 Olympic Games. From then the automakers set an "Olympic Program" in which half of their marketing dollars would be used for the Games.

In the first half of this year, VW delivered 2.11 million vehicles worldwide, a record sales figure. And in China, VW's largest market, the German automaker sold 443,000 vehicles over this period, an increase of 25.4 per cent from a year earlier.