The Volkswagen Group started building relationships with China back in 1978. The first Santana was produced in Shanghai in April 1983. In October 1984, SAIC Volkswagen Corporation ltd., the Volkswagen Group’s first joint venture in China, was established in Shanghai
In February 1991, FAW-Volkswagen Corporation Ltd. was set up in Changchun, creating the Volkswagen Group’s second joint venture in China. In June 2017, Volkswagen Group launched a new joint venture with Anhui Jianghuai Automobile Co., Ltd. for e-mobility in China.
The Volkswagen Group’s business activities in China include the production, sale and servicing of complete vehicles and parts such as engines and transmissions. All the Group’s automotive brands have a business presence in China through Volkswagen Group China and its subsidiaries.
The Group has grown together with China’s auto industry, overcoming many challenges and achieving significant growths during more than 30 years’ partnership with China. Since entering the Chinese market, the Volkswagen Group has risen to a market-leading position in China. In 2018, together with its two joint ventures – SAIC VOLKSWAGEN and FAW-Volkswagen – Volkswagen Group China delivered 4.21 million vehicles to customers on the Chinese mainland and in Hong Kong.
Volkswagen Group China, together with joint venture partners, has established 33 plants in China and started to build factories specifically designed for production on our modular electric drive platform for electric vehicles (“MEB”) in both SAIC VOLKSWAGEN and FAW-Volkswagen to be able to meet the future demand in China’s fast growing e-mobility market. The MEB production will start in 2020. Volkswagen Group China has more than 95,000 employees in China, including those of joint ventures. At around 3,000 authorized dealerships across the country, more than 380,000 dealer staffs provide professional services to thousands of customers every day (employees, dealers and dealer staffs of the new joint venture with Anhui Jianghuai Automobile Co., Ltd are not included).
As China’s most dependable partner, Volkswagen not only provides high-quality products and reliable services to Chinese customers, but also actively supported a wide range of Corporate Social Responsibility programs traversing Environmental Protection, Sustainable Mobility, Sports Development, Arts & Culture, and Poverty Alleviation. After establishing a CSR fund with initial amount of 50 mio. RMB in 2014 and a further increase of another 50 mio. RMB in 2016, Volkswagen Group China announced in 2018 to substantially increase that commitment with a further 100 mio. RMB for Social Responsibility Projects – double previous contributions and named the fund “Volkswagen Group China Zhi Xing CSR Fund”.
By continuing to bring the most advanced and environmentally sound technologies and products to China, as well as providing professional services that further enhance customer satisfaction, the Volkswagen Group is driving toward a sustainable future in China’s automobile industry.
The three highlight projects 2018
“Given the challenging market environment, we are extremely grateful for being the number one choice among Chinese customers and for their given trust.”
Volkswagen Group China Achieves Sales Record in 2018
With its Chinese joint venture partners, SAIC VOLKSWAGEN and FAW-Volkswagen, Volkswagen Group China delivered 4.21 (4.18, +0.5 percent) million vehicles to customers in the Chinese Mainland and Hong Kong, including 196,300 imported vehicles. This record result saw Volkswagen Group China outperform the overall passenger car market.
“We have not only maintained our level of deliveries in a challenging market but also increased our market share. This performance reflects the trust and preference of customers in Group’s brands, as well as the increasing momentum of our SUV offensive. We see huge potential for the Chinese market. It is leading the way in the adoption of sustainable mobility, digitalization and new mobility services. At every step of this revolution, we will maintain our core focus: the needs of our customers,” said Wöllenstein, CEO of Volkswagen Group China and CEO of Volkswagen China Passenger Cars Brand. He added: “As the world’s automotive powerhouse, China remains our most important market. To stay at the forefront of auto development, we have to leverage the competencies and achievements that we have built up here in China.”
Full—year deliveries for the Volkswagen brand in 2018 totaled 3.11 (3.18, —2.1 percent) million in Chinese Mainland and Hong Kong. Following a challenging second half in 2018, the Volkswagen brand maintained its position as the clear number one choice for Chinese car buyers, expanding its market share. The year 2018 also marks a milestone as the 30 millionth Volkswagen was delivered to a Chinese customer. Under its Move Forward initiative, Volkswagen is speeding up its activities in China. This year will see the launch of another 5 new models — adding to the 9 from 2018 — to provide Chinese consumers even more choice.
In Chinese mainland and Hong Kong, Audi once again closed the year with a new record-breaking figure, with 663,000 automobiles sold representing an increase of 10.9 percent. The sales volume has increased more than fivefold over the past ten years. In 2018, the Four Rings saw demand soar for the locally produced premium models A4L (+42.6% to 163,300 cars) and A3 (+12.7% to 91,200 cars) in particular.
In the world’s largest sales market, the Czech manufacturer — ŠKODA delivered 341,000 (325,000, +4.9 percent) vehicles to Chinese customers.
Among the luxury brands, Porsche delivered around 80,100 vehicles during the 12 months in Chinese Mainland and Hong Kong, an increase of 12 percent and maintaining China’s position as Porsche’s strongest individual market.
Chinese Youth Football Development Benefits from Volkswagen Junior Football Program
A total of 15 outstanding youth coaches from 10 Chinese cities and 16 “Stars of Hope” young Chinese players have been taken to Germany as part of the “4th Volkswagen Junior Football Train-the-Trainer Program”. The tour, which began on August 15, is organized by Volkswagen Group China in collaboration with the Chinese Football Association and the China Sports Foundation. Participants experienced Germany’s profound football culture, receive professional training at leading club VfL Wolfsburg and learned advanced theory and practical methods for youth training.
Youth is the future of society and the hope of the country. Prioritizing the growth and development of the next generation is a positive manifestation of Volkswagen Group China’s performance of its corporate social responsibility (CSR). Based on the current needs of Chinese junior football, Volkswagen Group China integrated its high-quality football resources and linked with the China Sports Foundation to establish the “Volkswagen Junior Football Development Fund” in 2015. It has also worked closely with the Chinese Football Association and two joint venture enterprises - FAW-Volkswagen and SAIC VOLKSWAGEN - to launch three CSR projects - the “Volkswagen Junior Football Camp,” the “Volkswagen Junior Football Summer Camp” and the “Volkswagen Junior Football Train-the-Trainer.”
In view of a shortage of professional front-line coaches in Chinese junior football, Volkswagen Group China launched the “Volkswagen Junior Football Train-the-Trainer Program” in 2015 and invited youth training experts from the German Football Association and VfL Wolfsburg to China to customize training courses for Chinese youth coaches. Based on the practical experience gained, the event selected 15 outstanding youth coaches to be sent to Germany for study and exchanges in 2017 for the first time. They fully explored youth training systems for U8-U17 as well as built the capacity to continually develop their own coaching skills and provide valuable experience in team management. In 2018, 16 “Stars of Hope” youth players and 15 outstanding youth coaches selected from this year’s training camps and summer camps have been sent to Germany. Since its inception in 2015, the program has trained 352 Chinese youth coaches, benefitting over 45,000 junior football players.
“Give a man a fish and he can eat for a day; teach him how to fish and he can enjoy fish for the rest of his life.” Yin Jin, Head of CSR Department of Volkswagen Group China, said, “Volkswagen Group China hopes to promote the sustainable development of football culture among Chinese youth, further the advancement of Chinese junior football and promote cultural exchanges between China and Germany. Football is more than a match. Skill improvement, teamwork, self-discipline and persistence are all qualities we want the young players to learn. Playing football builds their bodies and the football spirit helps them grow positively.”
In the past 30 years, Volkswagen Group China has remained committed to becoming the most responsible and trustworthy partner of Chinese society, caring for the environment, customers and the next generation. In the future, Volkswagen Junior Football Program will integrate various resources to provide comprehensive and systematic support for the sustainable development of Chinese youth football and take advantage of football to promote cultural and sports exchanges between the two countries.
Volkswagen Group China and its Joint Ventures are Accelerating the E-mobility Strategy to Reduce Environmental Impact of Products
SAIC VOLKSWAGEN Builds First Factory Designed for the MEB Production in Anting, Shanghai
The electrification strategy of the Volkswagen Group China is rapidly gaining pace in the world’s biggest market for e-mobility. In Anting, the first factory specifically designed for the MEB platform has commenced construction. The first model that will be produced is a Volkswagen Brand SUV in 2020.
“Through Volkswagen’s MEB platform, we will be able to easily produce state-of-the-art electric vehicles for our Chinese customers on a high scale. The Volkswagen Group, its brands and their Chinese joint venture partners focus consistently on sustainable mobility and push the transformation of the automotive industry in China and worldwide. In this way, we emphasize the importance of the China market for the Volkswagen Group,” said Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen Aktiengesellschaft.
SAIC VOLKSWAGEN’s new factory, located in Anting, Shanghai, adopts a production network structure based on Industry 4.0, greatly increasing automation rates and efficiency. The facility comes equipped with over 1,400 Industry 4.0 standard robots, as well as a range of technologies including AI, AR and VR, delivering an intelligent and digitalized production plant. Covering 610,000 square meters, the NEV plant includes a variety of different function areas such as press and battery assembly workshops, in addition to an elevated stereoscopic warehouse and proving road and more. Meanwhile, it utilizes 27 types of environmentally-friendly technologies with a focus on water preservation, energy saving and carbon dioxide and volatile organic compounds (VOCs) reduction.
The facility is scheduled to be put into production by 2020 with a planned annual capacity of 300,000 vehicles. It will produce various new pure electric vehicles of SAIC VOLKSWAGEN, including medium- and large-sized pure electric SUVs, as well as battery systems. The very first car will be launched in 2020, a Volkswagen SUV. The factory will become an intelligent and flexible vehicle production base for SAIC VOLKSWAGEN, further supporting the Volkswagen Group in its e-mobility strategy in China.
FAW-Volkswagen’s Mega-factory in Foshan will Achieve Zero Emission of Pollutants through A Complete Purification and Recycling System
Through the completion of the Foshan Plant Phase II, the Foshan production site’s capacity will double from 300,000 to 600,000 cars annually. Moreover, among the new FAW-Volkswagen factories in Qingdao and Tianjin, Foshan will play a key part in Volkswagen’s e-mobility strategy Roadmap E. Vehicles currently produced on the MQB platform will soon be electrified. By 2020, the MEB architecture for pure battery cars will be introduced to the production line. The newest electric models with the latest technologies of Volkswagen and Audi will be produced at the Foshan Plant, as well as the MEB battery systems.
Through Roadmap E, the Volkswagen Group aims to release 40 new locally produced NEVs in the next 7 or 8 years, as it prepares to deliver up to 1.5 million NEVs annually by 2025. The Foshan Plant Phase II will be an ideal representation of green, energy-saving production, intelligent manufacturing and smart operations. Through a complete purification and recycling system, the plant achieves zero emission of pollutants. Foshan Plant Phase II will not only be a manufacturer of smart, sustainable mobility solutions, but a leading example of eco-friendly production methods.
Driving Forward E-Mobility in China, Volkswagen Group China, JAC and SEAT Sign MoU for Developing a Battery Electric Vehicle Platform
Volkswagen Group China signed a Memorandum of Understanding with Anhui Jianghuai Automobile Group Corp., Ltd. (JAC) and SEAT on 28 November 2018, in the presence of Chinese President Xi Jinping and Spanish Prime Minister Pedro Sánchez. Under the agreement, all parties will leverage their technology and product strengths to develop a battery electric vehicle platform for production at JAC Volkswagen. JAC Volkswagen will introduce the SEAT brand by 2021, and jointly electrify SEAT products with the brand. The construction of JAC Volkswagen R&D center started before the end of 2018. The R&D center will focus on key areas such as connectivity, autonomous driving and other future strategic directions. The signing provides new impetus in the growing partnership between Volkswagen Group China, JAC and SEAT, working together in the important e-mobility market in China.
“E-mobility along with digitalization, connectivity and autonomous driving are the future of the mobility industry, and China has established itself as a major driver of this transformation,” said Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG. “This partnership also represents the benefits of a globalized approach to delivering sustainable mobility.”
This Memorandum of Understanding helps Volkswagen Group take solid steps in the Chinese market. SEAT plays a leading role in implementing the agreement’s initiatives. The products which will be manufactured from the battery electric vehicle platform will address the e-mobility requirements of Chinese customers.
The R&D center, which will be established through joint efforts, develops connectivity and autonomous driving technologies specifically tailored to the Chinese market. Construction is scheduled to start before the end of 2018.
These developments are part of a comprehensive effort by Volkswagen Group China, along with its other joint ventures, FAW-Volkswagen and SAIC VOLKSWAGEN, in the e-mobility field, which will see the launch of 30 new energy vehicle models in the next two years, half of which will be produced in China. The group aims to deliver around 400,000 NEVs in China in 2020, and is preparing to deliver around 1.5 million in 2025.
Being aware of our internal and external stakeholders’ needs and expectations is a crucial prerequisite for business success. Volkswagen Group China actively seeks out and maintains dialogs with our stakeholders. Stakeholders include governmental organizations, public organizations, international organizations, non-governmental organizations, local communities, business partners, customers, suppliers, employees, analysts and investors – a network of relationships that is expanding in parallel with our market presence.
- Volkswagen Group China awarded “Top Employer” in 2018
- SAIC VOLKSWAGEN awarded “Top Employer” in 2018
- FAW-Volkswagen awarded “Top Employer” in 2018
- Volkswagen Group China receives 3 awards by Southern Weekend: The Best Responsible Enterprise of Automobile Industry, The Best Innovative Public Welfare Project and The Best Responsible Enterprise
- 2018 Annual Responsible Enterprise by China Newsweek
- 2018 Low-Carbon Model by China Newsweek
- 2018 The Yixuan Award-China Auto Corporate Social Responsibility Award-The Best Education Welfare Practice Award by Auto Business Review
- 2018 China Corporate Social Responsibility Excellence Award by China Philanthropy Times
- Annual Social Responsibility Award by China Automotive News
- Public Welfare Communication Silver Award by China International Public Relations Association
- Outstanding Social Responsibility Award by Chinese Football Association