Volkswagen Group China
Encyclopedia
Volkswagen Group China (VGC) (大众汽车(中国)) is division of the German
automotive concern
Volkswagen Group
in the People's Republic of China
.
Volkswagen Group China enjoys sales of about 1.9m cars (2010) in the Chinese market and is the largest foreign carmaker. The Chinese market is one of the main markets of the Group. Operations of Volkswagen in China include the production, sales and services of whole cars, parts and components, engines and transmission systems, and the sales and service of imported cars. The company's locally manufactured and imported vehicles are sold under various brand names such as Volkswagen
, Audi
, Škoda
, Bentley
, and Lamborghini
in China.
Volkswagen Group China is the largest, earliest, and the most successful international partner in China's Automotive Industry
. It started its connection with China as early as in 1978, and has been taking the leading position in the Chinese automotive market for more than 25 years. Its first joint venture
in China, Shanghai Volkswagen Automotive Co., Ltd.
, was established in October 1984. The second joint venture, FAW-Volkswagen Automotive Company Ltd.
was established in Changchun
in February 1991.
Today, the Group has 16 representative companies in the country, undertaking parts delivery and service provision for both customers and industry in addition to vehicle production and import.
By May 2004, Volkswagen Group had concentrated its strengths in the founding of Volkswagen Group China (VGC), which is governed by a six-member management team responsible for the areas of sales and marketing, technology, purchasing, personnel and governmental relations as well as finance. VGC's tasks include supervision of the Chinese associated companies of the Volkswagen Group, and the set-up of new business segments.
, via its Volkswagen Group China division, has 16 subsidiaries
in China
, with Shanghai Automotive Industry Corporation (SAIC), and First Automobile Works
(FAW) being the two major Chinese partner companies.
(JV) was established between Volkswagen Group
and Shanghai Automotive Industry Corporation, creating Shanghai Volkswagen Automotive Co., Ltd.
(SVW). With its headquarters
in Shanghai
, equity holdings are split (as of 2010) - Volkswagen AG (40%), Volkswagen (China) Invest (10%), SAIC (50%). This a fixed term venture, of 45 years, running until 2030.
Shanghai Volkswagen Automotive Co., Ltd. (SVW) is the first car-making joint venture since China began its reform, and debut to the outside world, and is located in Anting International Auto City
on the northwest outskirts of Shanghai
. Producing cars under the Volkswagen and the Škoda brands, SVW currently offers a total of twelve model series. By October 2009, SVW had turned out over five million cars in total, becoming the carmaker that has the biggest population of cars in China.
Cooperation of Shanghai Volkswagen and Škoda
In April 2005, Škoda officially landed at Shanghai Volkswagen, ushering Shanghai Volkswagen into the dual brand era. In September 2006, Shanghai Volkswagen Škoda – the first Chinese manufactured Škoda - was launched and the Chinese name was announced.
Octavia
, the first Shanghai Volkswagen Škoda model, hit the market on 6 June 2007. Octavia is the first of its class that exceeds its international prototype in real sense. Following Octavia's success, Shanghai Volkswagen launched Fabia in 2008 and Superb in 2009.
(FAW-VW) is a large-scale carmaker jointly funded by China FAW Group subsidiary First Automobile Works
, Volkswagen AG
, Audi AG
and Volkswagen (China) Investment Co., Ltd. It was the first modern car industrial base constructed with an economy of scale in China. With its development over the years, FAW-Volkswagen is producing thousands of vehicles on a daily basis.
FAW-Volkswagen manufactures 9 products of two globally known brands, Volkswagen Passenger Cars
and Audi, with advanced technology and equipment. Volkswagen Jetta, New Bora, Golf, Sagitar, Magotan, Volkswagen CC, Audi A6L, Audi A4L and Audi Q5 cars are very popular among consumers. FAW-Volkswagen is a mature production base in China, with a complete portfolio of both A-, B- and C-grade cars.
, with more than 20 years of development experience in China, was the first global premium car brand to realize domestic production in China.
Agreements on the manufacturing of the Audi 100 under license were signed on 13 August 1988, with this date marking the conclusion of negotiations lasting one year. The joint venture agreement included both the technology transfer for the production and planning of the Audi 100
, and the setting up of after sales support. Expertise was in addition transferred by providing training for some 500 Chinese workers at Audi in Germany. Furthermore, around 30 Audi employees were posted to Changchun
to provide production support.
In November 1993, the then-Board Chairman of FAW and Volkswagen AG, signed a letter of intent on the integration of Audi production and a V6 engine
plant into the FAW-Volkswagen joint venture, which had been established at the end of 1991. As a result of the signing of the agreements in December 1995, Audi acquired a 10 percent stake in the joint venture by the name of FAW-Volkswagen Automotive Company Ltd. Volkswagen AG controls 30 percent, with FAW continuing to hold a 60 percent stake.
The first Audi product built by the joint venture, a modified Audi 100 with V6 engine bearing the model designation Audi 200, went into production in May 1996. The Audi 200 remained in production until summer 1999 (facelift of the Audi 100) with 2.6 and 2.4 litre
V6 engines and the 4-cylinder, 1.8 litre turbo power unit. The content manufactured locally at the Changchun plant was 60 percent.
Shanghai Automotive Industry Company (SAIC)
First Automobile Works (FAW)
Independent links
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
automotive concern
Concern (business)
A concern is a German type of business group. It results from the merger of several legally independent companies an economic entity under unified management. These associated companies called "Group" companies....
Volkswagen Group
Volkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
.
Volkswagen Group China enjoys sales of about 1.9m cars (2010) in the Chinese market and is the largest foreign carmaker. The Chinese market is one of the main markets of the Group. Operations of Volkswagen in China include the production, sales and services of whole cars, parts and components, engines and transmission systems, and the sales and service of imported cars. The company's locally manufactured and imported vehicles are sold under various brand names such as Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
, Audi
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
, Škoda
Škoda Auto
Škoda Auto , more commonly known as Škoda, is an automobile manufacturer based in the Czech Republic. Škoda became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as the entry brand to the group...
, Bentley
Bentley
Bentley Motors Limited is a British manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley known as W.O. Bentley or just "W O". Bentley had been previously known for his range of rotary aero-engines in World War I, the most famous being the Bentley BR1 as used in later...
, and Lamborghini
Lamborghini
Automobili Lamborghini S.p.A., commonly referred to as Lamborghini , is an Italian car manufacturer. The company was founded by manufacturing magnate Ferruccio Lamborghini in 1963, with the objective of producing a refined grand touring car to compete with established offerings from marques like...
in China.
Volkswagen Group China is the largest, earliest, and the most successful international partner in China's Automotive Industry
Automobile industry in China
Automotive industry in the People's Republic of China has become the largest automotive market in the world since late 2008. China's automobile industry has been in rapid development since the early 1990s...
. It started its connection with China as early as in 1978, and has been taking the leading position in the Chinese automotive market for more than 25 years. Its first joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
in China, Shanghai Volkswagen Automotive Co., Ltd.
Shanghai Volkswagen Automotive
Shanghai Volkswagen Automotive Co., Ltd. is a joint venture company between Volkswagen Group and Shanghai Automotive Industry Corporation established in 1984...
, was established in October 1984. The second joint venture, FAW-Volkswagen Automotive Company Ltd.
FAW-Volkswagen
FAW-Volkswagen Automotive Company was founded in 1990, is a Chinese joint venture between the First Automobile Works and Volkswagen Group, creating FAW-Volkswagen Automotive Company, informally abbreviated to FAW-VW. Equity holdings are split as follows: Volkswagen AG with 20%, Audi AG has 10%,...
was established in Changchun
Changchun
Changchun is the capital and largest city of Jilin province, located in the northeast of the People's Republic of China, in the center of the Songliao Plain. It is administered as a sub-provincial city with a population of 7,677,089 at the 2010 census under its jurisdiction, including counties and...
in February 1991.
Volkswagen Group China's business
In 1984, Volkswagen signed a 25-year contract to make passenger cars in Shanghai. Since, at that time, vehicle manufacturers could not own a majority stake in a manufacturing plant, Volkswagen’s venture took the limit of 50 per cent foreign ownership.Today, the Group has 16 representative companies in the country, undertaking parts delivery and service provision for both customers and industry in addition to vehicle production and import.
By May 2004, Volkswagen Group had concentrated its strengths in the founding of Volkswagen Group China (VGC), which is governed by a six-member management team responsible for the areas of sales and marketing, technology, purchasing, personnel and governmental relations as well as finance. VGC's tasks include supervision of the Chinese associated companies of the Volkswagen Group, and the set-up of new business segments.
VGC companies
Volkswagen GroupVolkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
, via its Volkswagen Group China division, has 16 subsidiaries
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
in China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, with Shanghai Automotive Industry Corporation (SAIC), and First Automobile Works
First Automobile Works
FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....
(FAW) being the two major Chinese partner companies.
Shanghai Volkswagen Automotive Company
In 1984, a joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
(JV) was established between Volkswagen Group
Volkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
and Shanghai Automotive Industry Corporation, creating Shanghai Volkswagen Automotive Co., Ltd.
Shanghai Volkswagen Automotive
Shanghai Volkswagen Automotive Co., Ltd. is a joint venture company between Volkswagen Group and Shanghai Automotive Industry Corporation established in 1984...
(SVW). With its headquarters
Headquarters
Headquarters denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top of a corporation taking full responsibility managing all business activities...
in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, equity holdings are split (as of 2010) - Volkswagen AG (40%), Volkswagen (China) Invest (10%), SAIC (50%). This a fixed term venture, of 45 years, running until 2030.
Shanghai Volkswagen Automotive Co., Ltd. (SVW) is the first car-making joint venture since China began its reform, and debut to the outside world, and is located in Anting International Auto City
Anting
Anting is a town in the Jiading District of Shanghai, People's Republic of China. Pronounced An'ting, the placename means "The Pavilion of Peace". Anting is located in the Jiading District of Shanghai, on the border of the neighbouring province of Jiangsu...
on the northwest outskirts of Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
. Producing cars under the Volkswagen and the Škoda brands, SVW currently offers a total of twelve model series. By October 2009, SVW had turned out over five million cars in total, becoming the carmaker that has the biggest population of cars in China.
| Shanghai Volkswagen Automotive Company | |
|---|---|
| founding year | 1984 (production start: 1985) |
| headquarters | Shanghai |
| equity holders | Volkswagen AG (40%), VW (China) Invest (10%), SAIC (50%) |
| employees | 22,000 (31.12.2010) |
| products | Volkswagen: Tiguan LWB, Touran, Passat New Lingyu, New Passat, Lavida, Polo (hatchback and notchback), Cross Polo, Santana B2, Santana Vista Škoda: Octavia, Fabia, Superb |
Cooperation of Shanghai Volkswagen and Škoda
In April 2005, Škoda officially landed at Shanghai Volkswagen, ushering Shanghai Volkswagen into the dual brand era. In September 2006, Shanghai Volkswagen Škoda – the first Chinese manufactured Škoda - was launched and the Chinese name was announced.
Octavia
Škoda Octavia
The Škoda Octavia is a small family car produced by Czech automaker Škoda Auto since 1996, its name revived from a model originally produced between 1959 and 1971. The current Octavia is available in five-door liftback and station wagon....
, the first Shanghai Volkswagen Škoda model, hit the market on 6 June 2007. Octavia is the first of its class that exceeds its international prototype in real sense. Following Octavia's success, Shanghai Volkswagen launched Fabia in 2008 and Superb in 2009.
FAW-Volkswagen Automotive Company
Established in February 1991, FAW-Volkswagen Automotive CompanyFAW-Volkswagen
FAW-Volkswagen Automotive Company was founded in 1990, is a Chinese joint venture between the First Automobile Works and Volkswagen Group, creating FAW-Volkswagen Automotive Company, informally abbreviated to FAW-VW. Equity holdings are split as follows: Volkswagen AG with 20%, Audi AG has 10%,...
(FAW-VW) is a large-scale carmaker jointly funded by China FAW Group subsidiary First Automobile Works
First Automobile Works
FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....
, Volkswagen AG
Volkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
, Audi AG
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
and Volkswagen (China) Investment Co., Ltd. It was the first modern car industrial base constructed with an economy of scale in China. With its development over the years, FAW-Volkswagen is producing thousands of vehicles on a daily basis.
FAW-Volkswagen manufactures 9 products of two globally known brands, Volkswagen Passenger Cars
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
and Audi, with advanced technology and equipment. Volkswagen Jetta, New Bora, Golf, Sagitar, Magotan, Volkswagen CC, Audi A6L, Audi A4L and Audi Q5 cars are very popular among consumers. FAW-Volkswagen is a mature production base in China, with a complete portfolio of both A-, B- and C-grade cars.
| FAW-Volkswagen Automotive Company | |
|---|---|
| founding year | 1990 (production start: 1991) |
| headquarters | Changchun/Jilin province |
| equity holders | Volkswagen AG Volkswagen Group Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest.... (20%), VW (China) Invest (10%), Audi AG Audi Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group.... (10%), FAW First Automobile Works FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd .... (60%) |
| employees | 27,000 (31.12.2010) |
| products | Volkswagen Volkswagen Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is... : Jetta A2, New Bora, Golf Volkswagen Golf The Volkswagen Golf is a small family car manufactured by Volkswagen since 1974 and marketed worldwide across six generations, in various body configurations and under various nameplates – as the Volkswagen Rabbit in the United States and Canada , and as the Volkswagen Caribe in Mexico .The... , Sagitar, Magotan, Volkswagen CC Volkswagen Passat CC The Volkswagen Passat CC is a 4-door coupé version of the Volkswagen Passat. It debuted in January 2008 at the North American International Auto Show in Detroit... Audi Audi Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group.... : A6L Audi A6 The Audi A6 is an executive car marketed by the German automaker Audi AG, now in its fourth generation. As the successor to the Audi 100, the A6 is manufactured in Neckarsulm, Germany – and is available in saloon, and wagon configurations, the latter marketed by Audi as the Avant.All generations... , A4L Audi A4 The first generation Audi A4 debuted in 1994, with production starting November 1994. It was built on the Volkswagen Group B5 platform, which it shared with the fourth generation Volkswagen Passat . It had a front-mounted longitudinal engine and front-wheel drive... , Q5 Audi Q5 The Audi Q5 is a compact crossover SUV which was released by German automaker Audi for the 2009 model year. It is built using the new Audi MLP platform which debuted in the 2007 Audi A5 coupé. The Q5 is the second Audi model in the "Q" range, after the full-size Q7... |
Audi at FAW-Volkswagen
Audi AGAudi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
, with more than 20 years of development experience in China, was the first global premium car brand to realize domestic production in China.
Agreements on the manufacturing of the Audi 100 under license were signed on 13 August 1988, with this date marking the conclusion of negotiations lasting one year. The joint venture agreement included both the technology transfer for the production and planning of the Audi 100
Audi 100
The restyled C2 Audi 100 was launched in 1976, with an in-line five-cylinder engine...
, and the setting up of after sales support. Expertise was in addition transferred by providing training for some 500 Chinese workers at Audi in Germany. Furthermore, around 30 Audi employees were posted to Changchun
Changchun
Changchun is the capital and largest city of Jilin province, located in the northeast of the People's Republic of China, in the center of the Songliao Plain. It is administered as a sub-provincial city with a population of 7,677,089 at the 2010 census under its jurisdiction, including counties and...
to provide production support.
In November 1993, the then-Board Chairman of FAW and Volkswagen AG, signed a letter of intent on the integration of Audi production and a V6 engine
V6 engine
A V6 engine is a V engine with six cylinders mounted on the crankcase in two banks of three cylinders, usually set at either a right angle or an acute angle to each other, with all six pistons driving a common crankshaft...
plant into the FAW-Volkswagen joint venture, which had been established at the end of 1991. As a result of the signing of the agreements in December 1995, Audi acquired a 10 percent stake in the joint venture by the name of FAW-Volkswagen Automotive Company Ltd. Volkswagen AG controls 30 percent, with FAW continuing to hold a 60 percent stake.
The first Audi product built by the joint venture, a modified Audi 100 with V6 engine bearing the model designation Audi 200, went into production in May 1996. The Audi 200 remained in production until summer 1999 (facelift of the Audi 100) with 2.6 and 2.4 litre
Litre
pic|200px|right|thumb|One litre is equivalent to this cubeEach side is 10 cm1 litre water = 1 kilogram water The litre is a metric system unit of volume equal to 1 cubic decimetre , to 1,000 cubic centimetres , and to 1/1,000 cubic metre...
V6 engines and the 4-cylinder, 1.8 litre turbo power unit. The content manufactured locally at the Changchun plant was 60 percent.
Further VGC entities
The following are the subsidiary companies which form Volkswagen Group China:| Company | Ownership | Location |
|---|---|---|
| Volkswagen (China) Investment Company Ltd. | VW AG 100% | Beijing |
| Volkswagen Finance (China) Company Ltd. | VW AG 100% | Beijing |
| Volkswagen Beijing Center Company Ltd. | VW (China) 70%, Automobile Repair Company Beijing 30% | Beijing |
| Volkswagen FAW Platform Company Ltd. (Powertrain) | VW 60%, FAW 40% | Changchun |
| FAW-Volkswagen Sales Company Ltd. | FAW-VW 99%, FAW 1% | Changchun |
| Volkswagen FAW Engine (Dalian) Company Ltd. | VW (China) 60%, FAW 40% | Dalian |
| Volkswagen Automatic Transmission (Dalian) Company Ltd. | VW (China) 100% | Dalian |
| Volkswagen Transmission (Shanghai) Company Ltd. | VW (China) 60%, FAW 20%, SAIC 20% | Shanghai |
| Shanghai Volkswagen Powertrain Company Ltd. | VW (China) 60%, SAIC 40% | Shanghai |
| SAIC-Volkswagen Sales Company Ltd. | SAIC 50%, VW (China) 30%, SVW 20% | Shanghai |
| Volkswagen Import Company Ltd. | VW (China) 100% | Tianjin |
| SITECH Dongchang Automotive Seating Technology Ltd. | Sitech GmbH 60%, Dongchang 20%, Etern 20% | Dongchang |
| Volkswagen Hong Kong Ltd. | VW (China) 100% | Hong Kong |
See also
- List of German cars
- Volkswagen GroupVolkswagen GroupVolkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
- Volkswagen Group of America
- Volkswagen do BrasilVolkswagen do BrasilVolkswagen do Brasil Ltda. is a subsidiary arm of Volkswagen Group, established in 1953.-Brazilian developed Volkswagens:Many of its models were designed especially for Brazil:*Brasilia*SP1 & SP2*1500/Variant/Variant II*Karmann Ghia TC...
- Volkswagen Group IndiaVolkswagen Group IndiaVolkswagen Group Sales India Private Limited is the wholly owned subsidiary of Volkswagen Group in India. Its operations are spearheaded by three of Group division companies:They focus on manufacture and sales of Audi, Volkswagen and Škoda vehicles in India...
- List of Volkswagen Group factories
External links
Volkswagen Group China (VGC)- Volkswagen Group China &
- Shanghai-Volkswagen
- FAW-Volkswagen
- Audi China (FAW) corporate website
- Skoda China
- Volkswagen Finance (China) Co., Ltd.
Shanghai Automotive Industry Company (SAIC)
First Automobile Works (FAW)
- FAW Group corporate website
- FAW website with FAW-VW history &
- FAW website with FAW-VW landmarks &
Independent links
- Global Auto Index's engine specification & model list