Volkswagen AG and FAW-Volkswagen sign major import deal
- FAW-Volkswagen to import about RMB 62 billion worth of parts and vehicles in 2019 under the cooperation.
- Prof. Dr. Heizmann: “This cooperation is further evidence of our strong Joint Venture and reflects also the solid Sino-German trade ties, which have been built over the past 40 years of China’s reform and opening up.”
- Memorandum signed during the China International Import Expo in Shanghai, which showcases the country’s support for free trade.
Volkswagen AG and FAW-Volkswagen Automotive Co., Ltd. have signed a Memorandum of Cooperation under which the Chinese joint venture will import parts and vehicles worth a total of about RMB 62 billion. The Memorandum was signed during the China International Import Expo (CIIE) in Shanghai. “With the Memorandum we are demonstrating our confidence in further solid growth of the automotive market in China,” said Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft as well as President and CEO of Volkswagen Group China.
The Memorandum of Cooperation covers three purchase agreements. FAW-Volkswagen will purchase completely knocked down (CKD) parts for the production of Volkswagen models. It will also purchase CKD parts from Audi AG for the production of Audi models. Under the third agreement, it will import fully built Audi models from Audi AG for sale on the Chinese market. All deliveries will take place in 2019.
The document was signed by Karsten Schnake, Executive Vice President Purchasing at Volkswagen Group China, on behalf of Volkswagen AG, and Liu Yigong, Member of the Board of Directors and President of FAW-Volkswagen Automotive Co., Ltd., in the presence of Prof. Dr. Jochem Heizmann.