VW launches car finance firm

Volkswagen launched its wholly-owned auto finance unit, Volkswagen Finance (China), with start-up funds of RMB 500 million (US$60 million) to sell retail loans to car buyers. VW is the only carmaker in China, VW's second biggest market after Germany, to own its lending business outright. General Motors Corp also offers car loans in China, but through a joint venture. At present fewer than 20% of car purchases are financed in China where state banks have dominated the car loan market.