BEIJING: 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, which was a key indicator of a potential takeover.
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.
China's vehicle sales totalled 13.6 million units in 2009, reportedly overtaking the US as the world's largest auto market.
