VW Shifts Cars to China, Expands in Brazil to Offset Weak Europe

Volkswagen AG is exporting cars to China and expanding factories in Brazil in an effort to offset declining demand in Europe.

VW has reined in production in Europe to avoid building up inventories of unsold cars, Chief Executive Officer Martin Winterkorn said today at the Sao Paulo motor show. To bolster plant usage in its home region, the Wolfsburg, Germany-based company plans to export 200,000 cars, including Audi and Skoda models, to China next year, as the carmaker becomes “more cautious” on Europe, he said.