VW launches car financing in China
Germany’s Volkswagen formally launched car financing services in China today, though company officials said the government’s strict rules on lending could limit any rapid growth in the potentially huge market.
China agreed to open car financing to outside competition when it joined the World Trade Organisation three years ago, though it still forces foreign companies to meet high financial requirements and limits their ability to raise money in the local currency.
Under those conditions, Volkswagen’s financial services arm in China doesn’t expect to be profitable in the near term, said Helge Hiller, the firm’s corporate communications director.
