"Through reorganization, Chinese automakers can draw upon each other's strength, form synergy and make China's automotive industry more competitive in the world arena."

Growth in China's auto market during such globally troubled times has made the Shanghai auto show one of the most important industry gatherings this year.

Together with Shanghai-Volkswagen and FAW-Volkswagen, Volkswagen Group brings its entire series and latest technologies to the weeklong show, including two China premieres - the locally produced sixth-generation Golf and Passat New Lingyu.

"Our BlueMotion technologies will also be highlighted at Auto Shanghai 2009," said Winterkorn.

Volkswagen's high value placed on the Shanghai auto shows where the company thinks the future lies - in large part in the biggest auto market in the world.

"Compared with developed countries, per capita car ownership in China is still low, offering enormous potential for growth," said Winterkorn.

Volkswagen will invest US$1 billion in this year and next in China in new technologies, introduction of new products, brand building and upgrading sales channels and services.

"As the most reliable partner for China, Volkswagen Group will undoubtedly get more development opportunities from a stronger automotive industry in China," said Winterkorn.

The German group set bold targets last month to double annual sales in the nation from the current 1 million to 2 million units by 2018.

"Together with our two joint ventures, Shanghai Volkswagen and FAW-Volkswagen, we will double our dealership numbers to over 2,000 to achieve the 2 million sales target," said Winterkorn.