The manufacturers of Chinese independent brands are all cranking out new models as if the economic crisis has been a mere bump in the road. Chery plans to introduce 15 new models in 2009. Geely plans 12.

Volkswagen is just trying to stay in the game. Yes, they do have the advantage of a perception of higher quality, but the better selling vehicles right now are in the 1.6l and below class that enjoy tax breaks. VW offers little in that range.

Furthermore, the government has indicated its support for independent brands with the ultimate goal to (I think) displace foreign brands. As the quality perception of independent brands begins to reach that of foreign brands, it will be harder to move the more expensive cars.

The only question is how quickly the independent brands can step up quality. My guess is that, when Chinese cars begin to be exported to the U.S., Chinese will take that as a signal that their quality has improved.