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Volkswagen AG will expand technological development with its Chinese partner FAW Car Co and extend cooperation for 25 years to defend its leading position in the fastest growing world automotive market and push General Motors Co.
the largest automaker will also invest 100 million euros 126 million with its second local partner SAIC Motor Corp. in a new testing ground near the plant in Urumqi, Wolfsburg, said Germany-based Volkswagen today ' hui in a press Europe.
Companies with FAW and SAIC will benefit from a sustainable development of the automotive industry in China, VW CEO Martin Winterkorn said in the statement.
strong growth in China helped VW offset lower demand in other emerging markets and a slow recovery of the European auto market to 20-year low China is also essential to the goal of doubling VW Toyota Motor Corp. to become No. 1 automaker in the world by 2018 and stay ahead of GM, which ranks third in the volume of global sales.
VW has delivered 2 7 million vehicles to Chinese customers in the first nine months of 2014, a jump of 15 percent from last year GM said earlier today that sales in China rose 12 percent 2 58 million vehicles.
China is the largest VW sales region, accounting for about a third of the total volume of the group, and a key revenue generator.
The two joint ventures contributions to net profit for the first half of VW expanded to 2 € 62 billion 2 € 37 billion a year earlier VW has also received 2 8 billion euros in dividends of both companies in 2013.
VW has set up a joint venture with SAIC to produce the Santana car in 1985, making it one of the first foreign car manufacturers to enter the Chinese market The joint venture FAW was coined in 1991 in Changchun to produce under license sedan Audi 100.
Discussions are ongoing on increasing VW's 40 percent stake in the joint venture with FAW for a more balanced structure similar to the 50-50 percent agreement with SAIC.
China will look favorably VW's desire to increase participation and hope Germany will approve qualified Chinese companies to participate in tenders for train projects in German high speed, Premier Li Keqiang said in a published column 8 October in the daily Die Welt in Germany.
VW expands the technology work with China FAW, Technology, China.