Foreign car producers have begun taking control of their joint ventures in China and sidelining their Chinese counterparts from business partners to factory providers, a media report has said.
China Business News said the First Automobile Works-Volkswagen Co plans to establish its own logistic and sales networks. The company has already started to reassess contracts with secondary dealers in more than 30 cities. Mercedes-Benz China is also rumoured to have started a restructuring of its sales channels. The booming car market in China has prompted foreign car makers to consider establishing wholly-owned sales enterprises to replace old sales models.
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