Frightening news...

[Louis-Alain Richard]

   FRANKFURT, Oct 24 (AFP) - German automaker Volkswagen plans to manufacture
the A4 model of its Audi unit in China in order to confront the arrival on the
Chinese market of rival BMW, the newspaper Handelsblatt reported Thursday,
quoting sources close to Audi in Asia.
   By manufacturing in China Volkswagen hopes to reduce the model's sales
price in order to make it more competitive with BMW's Series 3, which is also
to be produced next year on Chinese territory, the paper said.
   It added that Volkswagen and Audi would announce the decision by the end of
the month.
   Volkswagen officials were not immediately available for comment.
   BMW's arrival in China poses a direct threat to Volkswagen, currently the
leader in passenger auto sales there, where the latter controls nearly 50
percent of the market.