NEWS

Beijing/Changchun, July 15, 2023. As it drives its transformation ‘In China, for China’, Volkswagen Group is expanding its cooperation with China FAW Group, a joint venture partner of both Volkswagen brand and Audi for more than 30 years. The two brands have respectively signed a Memorandum of Understanding (MoU) with FAW, which is marking its 70th anniversary, that further deepens their long-term collaboration. Under an agreement between Volkswagen and FAW, the two parties pledge to further leverage shared resources and create synergies. This will allow the brand to build on its strength in the Internal Combustion Engine (ICE), which is being hybridized step by step as an important part of the overall electric transformation, and New Energy Vehicle (NEV) segment. Based on an agreement between Audi and FAW, the two sides will further extend product portfolio for the new mobility era in the Chinese premium market.

Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, said: “Both Volkswagen and Audi have had extremely constructive and fruitful partnerships with FAW over the past three decades. Our strong joint ventures are crucial for our transformation in China, for China. With a joint commitment to the needs of our Chinese customers, we will work together to fully harness the innovation and speed of this dynamic market. We will continue on our journey with FAW and look forward to a future of shared success. I would like to congratulate FAW on its 70th anniversary and I have no doubt our long-term collaboration will continue to flourish for many years to come.”

The MOU between FAW and VW outlined a set of shared principles that will drive their future collaboration. They will work together to further improve their product lineup, push battery electric vehicles and further integrate local Chinese technologies. With the setup of the Volkswagen Group (China) Technology Company (VCTC), the new NEV R&D hub for VW Group in China, FAW-VW will be able to further leverage its own R&D resource – with the joint goal to improve time to market and reduce cost. FAW-Volkswagen will also continue to enhance the image of the VW brand, playing to its strength in the ICE market which will be hybridized gradually and high-end SUV market. In addition, both parties will continue to support Jetta’s sustainable development.

Volkswagen’s cooperation with FAW will also bolster the local NEV ecosystem and infrastructure by supporting the charging joint venture CAMS. And the two parties renewed their commitment of wider contributions towards China’s 2060 net zero targets via significant decarbonization already until 2030.

Audi’s longstanding partnership with FAW started 35 years ago. This fruitful collaboration has not only allowed Audi to become the first premium OEM with local production in China, but also the first premium brand to achieve the remarkable milestone of selling 8 million cars in the country. Audi and FAW will further expand product portfolio for the new mobility era in the Chinese premium market. Furthermore, the two sides will continue strengthening their cooperation in production and sales. The Audi FAW NEV Company is on schedule and will start production of PPE vehicles for China by end of 2024. To fulfill their promise of a premium customer experience, both partners will further develop their sales organization for an optimized go-to-market. The long-standing partners are also committed to deepening their joint responsibility for a stronger worldwide supply chain based on environmental and sustainable benchmarks, deeply integrated international resources, and greater resilience in challenging times.

In the midst of the global transition to intelligent and connected mobility, Volkswagen Group has a strong transformation plan to harness the innovative power of the Chinese market in electromobility, digitalization, and autonomous driving. Strong joint venture and other local partnerships are a key element of the strategy and the deepening relationship between FAW and Volkswagen Brand and Audi Brand will help it to accelerate its development capacities in China, for China.

Volkswagen and FAW Group signed the MoU regarding deepening strategic cooperation

Audi and FAW Group signed the MoU regarding deepening strategic cooperation