VW to boost exports from China

German carmaker Volkswagen said it is planning to sign contracts to increase exports of Chinese car parts from just US$100 million to US$1 billion by the end of this year. The plan is timely for the government after it set a target last year of increasing exports of auto parts from just US$5 billion to US$100 billion by 2010. But VW is expected to draw flak in Germany, where it is currently in talks with its trade unions about the future of its expensive production facilities, many of which it hopes to sell or close.The plan comes after the company, which set up its first car assembly joint venture in 1985, put in new management last year and vowed to make its joint ventures with First Auto Works and Shanghai Automotive Industry Corp work more closely after suffering losses recently.