VW expands engineering ties with FAW, SAIC
Volkswagen AG will expand technology development with Chinese partner FAW Car Co. and prolong cooperation for 25 years to defend its leadership in China and fend off General Motors.
Volkswagen AG will expand technology development with Chinese partner FAW Car Co. and prolong cooperation for 25 years to defend its leadership in China and fend off General Motors.
Europe's largest automaker also will invest 100 million euros (777.1 million yuan) together with its second local partner, SAIC Motor Corp., in a new testing ground near the factory in Urumqi, Volkswagen said in a statement.
The ventures with FAW and SAIC are "set to benefit from a sustainable development of the automobile industry in China," VW CEO Martin Winterkorn said in the statement.
Robust growth in China has helped VW offset shrinking demand in other emerging countries and a sluggish recovery of the European car market from a 20-year low. China is also vital to VW's goal of overtaking Toyota Motor Corp. to become the world's No. 1 automaker by 2018 and stay ahead of GM, which ranks third in global sales volume.
Market growth
VW delivered 2.7 million vehicles to Chinese customers in the first nine months of 2014, a 15 percent jump from last year.
GM said earlier that sales in China rose 12 percent to 2.6 million vehicles.
China is VW's largest sales market, accounting for about a third of the group's global volume, and a key earnings generator. The two ventures' contribution to VW's first-half net income widened to 2.62 billion euros from 2.37 billion euros a year earlier. VW also received 2.8 billion euros in dividends from the two ventures in 2013.
The agreements were among almost two dozen bilateral accords signed in Berlin Friday as Chinese Premier Li Keqiang met German Chancellor Angela Merkel at the start of a two-day visit.
Daimler-BAIC venture
Daimler AG, which ranks second to VW in Germany's car industry, reiterated earlier Friday that it will invest about 4 billion euros by 2015 with joint venture partner BAIC Motor Co. to expand production in China, including a newly signed, 1 billion euro agreement to add more compact vehicles.
VW established the SAIC venture to produce the Santana car in 1985, making it one of the first foreign automakers to enter the Chinese market. The FAW partnership was forged 1991 in Changchun for licensed production of the Audi 100 sedan.
Talks are still pending on raising VW's 40 percent stake in the joint venture with FAW for a more balanced structure similar to the 50-50 percent pact with SAIC.
Europe's largest automaker also will invest 100 million euros (777.1 million yuan) together with its second local partner, SAIC Motor Corp., in a new testing ground near the factory in Urumqi, Volkswagen said in a statement.
The ventures with FAW and SAIC are "set to benefit from a sustainable development of the automobile industry in China," VW CEO Martin Winterkorn said in the statement.
Robust growth in China has helped VW offset shrinking demand in other emerging countries and a sluggish recovery of the European car market from a 20-year low. China is also vital to VW's goal of overtaking Toyota Motor Corp. to become the world's No. 1 automaker by 2018 and stay ahead of GM, which ranks third in global sales volume.
Market growth
VW delivered 2.7 million vehicles to Chinese customers in the first nine months of 2014, a 15 percent jump from last year.
GM said earlier that sales in China rose 12 percent to 2.6 million vehicles.
China is VW's largest sales market, accounting for about a third of the group's global volume, and a key earnings generator. The two ventures' contribution to VW's first-half net income widened to 2.62 billion euros from 2.37 billion euros a year earlier. VW also received 2.8 billion euros in dividends from the two ventures in 2013.
The agreements were among almost two dozen bilateral accords signed in Berlin Friday as Chinese Premier Li Keqiang met German Chancellor Angela Merkel at the start of a two-day visit.
Daimler-BAIC venture
Daimler AG, which ranks second to VW in Germany's car industry, reiterated earlier Friday that it will invest about 4 billion euros by 2015 with joint venture partner BAIC Motor Co. to expand production in China, including a newly signed, 1 billion euro agreement to add more compact vehicles.
VW established the SAIC venture to produce the Santana car in 1985, making it one of the first foreign automakers to enter the Chinese market. The FAW partnership was forged 1991 in Changchun for licensed production of the Audi 100 sedan.
Talks are still pending on raising VW's 40 percent stake in the joint venture with FAW for a more balanced structure similar to the 50-50 percent pact with SAIC.
