At Konggang Motion Center in the north China city of Tianjin, you can see a movie, get a massage, have dinner - and look at the latest Chevrolets and Buicks. You can't buy a car at Konggang, which is near the center of town. Sales take place at a dealership on the outskirts. But 22-year old Chevrolet salesman Liu Jia insists the midtown showroom is valuable. "Of course it is a good thing," he says. "People can go there to see the cars and have some fun." Attracting consumers is crucial because private vehicle ownership is relatively new in China. Four out of five customers are shopping for their first car, and competition is fierce. Until about five years ago, the Chinese government made most vehicle purchases. The franchise dealership system was not well-developed. Volkswagen AG began assembling cars in China in 1986. PSA/Peugeot-Citroen SA started turning out cars in China in 1992. Initially, neither company had good control of its dealership system. Both had a mishmash of selling points, from factory-authorized dealerships to tiny storefronts in small towns. Volkswagen and PSA have worked in recent years to standardize their networks.
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