SVW joins bank, insurer for auto loan service
17/8/2004 11:09
Jane Chen / Shanghai Daily news
The Shanghai
Morning Post reported today that Shanghai Volkswagen Automobile Co Ltd has
formed a service union with the China Construction Bank and the PICC Property
and Casualty Company Ltd to provide automobile loans and insurance for VW car
buyers. Already having succeeded in providing a financial services package to
employees of the China Eastern Airlines Group, the union is arousing great
interest from corporate buyers.
SVW also hopes to expand the service to
private buyers. However this will not be easy, with the three parties of the
union having different interests: According to SVW, they cares most about
gaining the greatest loan possible. However the bank and the insurer must focus
on reducing their risks. .
SVW explained that to tackle this conflict, new
financial services will be designed to cater to the different customers. The
union indicates SVW's intention to strengthen cooperation with financial
institutions in the future, despite the pending launch of its own auto-finance
unit in two months. Some industry analysists point to SVW's eagerness to access
CCB's customer database as the motive for the move.
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