Volkswagen finance unit eyes expansion

The China auto-financing arm of Volkswagen AG says it plans to add more than a dozen dealers in the Beijing area to its network in the coming weeks, raising the finance unit's coverage to 75% to 80% of Volkswagen sales in the region, the Wall Street Journal reported, citing the unit's general manager. In a bid to further develop the Chinese market where the company has recorded nearly 500 loans since launching in September, the finance unit next plans to enter the Shanghai market, and says it will offer credit programs to most of the Volkswagen dealers in China by 2010. The finance arm estimates that less than 10% of cars sold in China are financed by auto loans, compared to about 80% in the US and 65% in Europe.