By Rhea Sandique-Carlos 
 

MANILA--Ayala Corp. (AC.PH) said Wednesday that Volkswagen AG (VOW.XE) has appointed one of the Philippine conglomerate's units as the local distributor for its passenger vehicles.

In a statement to the stock exchange Wednesday, Ayala said its Ayala Automotive Holdings Corp. unit would handle distribution for the German auto maker's vehicles under the Volkswagen marque in the Philippines.

The German auto maker also makes vehicles under the Audi AG (NSU.XE) marque, its premium brand.

"We are very excited to bring Volkswagen's technology and engineering expertise to the Philippine market. This partnership will no doubt enhance our current portfolio of auto brands," said Ayala's chief operating officer, Fernando Zobel de Ayala.

The Volkswagen group was the world's second largest automobile manufaturer in 2011, with global sales of 8.265 million units accounting for a 12.3% share of the passenger car market.

Mr. Ayala, who is also the company's president, didn't specify when it would start selling Volkswagen passenger cars or provide any sales targets.

Apart from Volkswagen, Ayala Automotive Holdings is also the distributor for Honda and Isuzu brand cars in the Philippines.

Write to Rhea Sandique-Carlos at rhea.sandique-carlos@dowjones.com

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