Volkswagen Group China
Status November
Status November
2014
2014
Production
About 3.135 million vehicles (12/2013)
Models
SVW
Volkswagen: New Polo, New Lavida, Gran Lavida, New Santana,
New Passat, Touran, Tiguan
Škoda:
Fabia, Octavia, Superb, Rapid, Yeti
FAW-VW
Volkswagen: Jetta, New Bora, New Bora GP, Golf 6, Golf 7, Sagitar,
Magotan, CC, Lamando
Audi:
Q3, Q5, A4L, A6L, A3
Engines, gearboxes, chassis, axles
Employees
about 90,000 (12/2013)
Management
Prof. Dr. Jochem Heizmann
Heads of
production
Dr. Christian Vollmer (SVW)
Dr. Jürgen Unser (FAW-VW)
Uwe Thesling (Volkswagen Group China)
Shareholders
FAW-VW: 60% FAW, 20% VOLKSWAGEN AG, 10% AUDI AG, 10% Volkswagen China Investment
Company Ltd.
SVW: 50% SAIC, 40% VOLKSWAGEN AG, 10% Volkswagen China Investment Company Ltd.
Production
Two joint ventures, SVW and FAW-VW, produce models of Volkswagen Group brands Volkswagen Passenger
Cars, Audi and ŠKODA in China for the Chinese market. Vehicle production also includes the supply of engines
and vehicle components for the models produced.
In total, the Volkswagen Group has 18 production locations including 8 vehicle production locations and 10
components production locations in China. Shanghai Volkswagen is expanding its production capacity with a new
plant in Changsha that is to be commissioned in 2015. FAW-Volkswagen is constructing two new production
plants at Qingdao and Tinajin.
The Volkswagen Group is among the most successful companies in the Chinese automobile industry. By 2018, the
workforce is to increase to 100,000 people, with up to 500,000 people in dealerships. Annual production capacity
is set to grow from the present figure of 3.1 million to more than 4 million units per year in 2018, in order to satisfy
the high demand of Chinese customers for individual mobility.
You will find a summary of the production locations on page 6.
Communications Volkswagen Group China:
Ms. Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Page 1
Status November
Status November 2014
2014
Investments
From 2014 to 2018, Volkswagen Group China is to invest a total of €18.2 billion in the expansion of its production
capacities in China. Low-emission models and sustainable production are to account for more than two thirds of
this figure. These investments are to be financed from the cash flow of the two joint venture companies in China.
Corporate structure of Volkswagen in China
The Volkswagen Group has two production companies in China, the joint ventures Shanghai Volkswagen
Automotive Co., Ltd. (SVW) and First Automotive Works-Volkswagen Automobile Co., Ltd. (FAW-VW). SVW was
initially established as an independent company by Shanghai Automotive Industry Corporation (SAIC) in 1984. In
1988, SVW became an official joint venture with the two companies VOLKSWAGEN AG and Volkswagen China
Investment Co., Ltd (VCIC). SAIC holds 50 percent of the shares, the Volkswagen Group 40 percent and VCIC 10
percent. In 2002, Volkswagen and SAIC extended the joint venture contract for SVW by a further period of 20
years.
FAW-Volkswagen Automotive Co., Ltd. was established in 1991 as a joint venture of the companies
VOLKSWAGEN AG and AUDI AG with First Automotive Works Co., Ltd. FAW holds a stake of 60%, the
Volkswagen Group 20%, VCIC 10% and AUDI AG also 10%. On October 10, 2014, Volkswagen and the joint
venture partner FAW extended the FAW-VW contract by a further period of 25 years.
Management
With effect from September 1, 2012, the Supervisory Board of VOLKSWAGEN AG appointed Prof. Dr. rer. pol.
Dr.-Ing. E. h. Jochem Heizmann member of the Board of Management of VOLKSWAGEN AG with responsibility
for the new Group function of ‘China’. Prof. Dr. Heizmann completed a degree in industrial engineering at
Karlsruhe University (TH) where he was granted a doctorate in 1980. He began his career in the car
manufacturing industry in 1982 at Audi NSU AUTO UNION AG in Ingolstadt, Germany. In October 1991,
Heizmann transferred to Volkswagen AG and took up the position of head of central planning for engine
production in Wolfsburg. From 2007 to 2010, Heizmann was member of the Board of Management of
Volkswagen AG with responsibility for ‘Group Production’. From October 1, 2010 to August 2012, Heizmann was
member of the Board of Management of Volkswagen AG with responsibility for ‘Group Commercial Vehicles’.
Communications Volkswagen Group China:
Ms.
Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Volkswagen Group China
Status November
Status November 2014
2014
Environment
With its "Think Blue. Factory." initiative, the Volkswagen brand has set itself clear targets for the environmentally
sustainable positioning of all its plants. By 2018, the aim is to reduce the environmental impact of all Volkswagen
plants worldwide by 25 percent compared with the values for 2010. Specifically, this means 25 percent lower
energy and water consumption, waste volumes and emissions at all plants. China will make appropriate
contributions to this reduction.
Volkswagen Group China has set itself the goal of becoming China's leading automaker in environmental terms.
For this purpose, the Group has developed 22 guidelines to ensure environmentally compatible production
processes and the continuous reduction of emissions. For example, fleet consumption has been reduced by 20
percent since 2005 by the use of BlueMotion Technologies (including. DSG transmissions and TSI engines). The
planned new plants will also set new standards for resource conservation in automobile production. The planned
new paint shops for example will need 70 percent less energy and 90 percent less water due to the use of new
technologies. Volkswagen is also forging ahead with electro-mobility in China in order to become the market
leader in terms of technology and sales in this area by 2018. As part of a special electro-mobility strategy tailored
to the Chinese market, it is planned that both joint ventures will gradually start producing electric vehicles and
plug-in hybrid electric vehicles in China from 2014/2015. The first model will be the Volkswagen electric up! in the
current year. In 2015, the Volkswagen Group will be launching two innovative plug-in hybrid models, the Audi A3
e-tron and the Golf GTE as well as the e-Golf, a purely electric model, on the Chinese market.
Communications Volkswagen Group China:
Ms. Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Page 3
Volkswagen Group China
Status November 2014
Status November
Corporate Social Responsibility (CSR)
2014
Volkswagen Group China is committed to being a responsible sustainable corporate citizen, also in China. For this
reason, Volkswagen Group China established a CSR department in November 2012, aiming to centrally
coordinate the group’s resources and enhance the impact of CSR activities in China.
In 2013, the Volkswagen Group started to focus on road safety for children. Together with its two joint venture
partners. Shanghai-Volkswagen and FAW-Volkswagen, the Volkswagen Group initiated the “Child Road Safety”
project in November 2013. Within the framework of this project, Group brands Volkswagen, Audi, ŠKODA, SEAT,
Porsche and Bentley have donated more than 5000 child seats to heighten the awareness of the Chinese public
for road safety for children. Together with the research centre of the Ministry of Public Safety and, the China
Automobile & Technology Research Center (CATARC), Volkswagen Group China published the results of the Child
Road Safety & Feasibility Study in China in May 2014.
Since 2013, Volkswagen has participated in the Rainbow Bridge Project initiated by the Chinese People’s
Association for Friendship with Foreign Countries. The project benefits from the organizational experience of major
companies with a view to meeting the social needs of young people in Chinese provinces. Thanks to the
commitment of Volkswagen, youth football teams for boys and girls in Chinese provinces have already been
established. Young Chinese footballers visited Germany in March 2014 within the framework of the Rainbow
Bridge Project sponsored by Volkswagen.
Volkswagen’s pioneering position in China is also confirmed by the high level of recognition enjoyed by the Blue
Book of China’s Automotive Industry, a report published annually by Volkswagen Group China together with the
DRC (Development Research Centre of Chinese State Council) and SAE China (Society of Automotive Engineers).
This report deals with the general development of the Chinese automotive industry and contains detailed forecasts,
analyses and special articles on key events.
Many awards bear witness to Volkswagen Group China’s unwavering social commitment. In 2013,
Volkswagen Group China was named “The Most Responsible Company” by the China News Weekly, “The
Annual CSR Winner” by China Times and an “Excellent CSR-practiced Company” by China Business News.
Communications Volkswagen Group China:
Ms. Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Page 4
Volkswagen Group China
Status November 2014
Status November
2014
Human resource management
The employees of Volkswagen Group China benefit from continuous personnel development efforts, with a view to
strengthening their competences and providing them with the best possible preparation for their highly demanding
tasks in the Chinese automotive industry. For this purpose, Volkswagen Group China coordinates all qualification
and personnel development matters in China from its central hub. There, the Group applies a curriculum that
combines modern training with practical tasks and know-how transfer. In connection with the construction of this
center of excellence in Beijing, functions to improve professional training as well as talent and personnel
development have been established. These ensure that Volkswagen’s high quality standards are also maintained in
the future and the growth strategy of the Volkswagen Group and its two joint ventures in China is consistently
pursued. The Purchasing Academy and Product Management Academy of Volkswagen Group China, which help
to train employees in this area, have already achieved first successes. Further internal academies will be
introduced in the near future.
Volkswagen Group China continues its efforts to introduce the system of dual vocational training in China. For
example, cooperation between the Volkswagen Group and the Chinese government to step up the development of
dual vocational training in China was established in 2014. Plans include nine competence centers for the training
of instructors and training curricula involving close connections between theory and practice, following the model
of German vocational training. The first two centers have already been established at Yizheng and Changchun. In
advance of this agreement, VOLKSWAGEN AG, Volkswagen Group China and FAW-Volkswagen signed a
cooperation agreement with local Chinese government bodies and institutions concerning the establishment of a
further certification centre for the training of senior instructors in the field of vehicle mechatronics in Changchun in
July 2013.
Volkswagen Group China also cooperates with a large number of universities and institutions throughout China. In
close cooperation with the top universities, Tsinghua (Beijing) and Tongji (Shanghai) for example, the Group
sponsors a number of support programs for especially talented students. These programs make scholarships,
internships and research projects available to students. In addition, the Volkswagen Group maintains strong ties
with vocational schools, colleges and universities at all its locations throughout China. This means that Chinese
students are brought into contact with the Group at a very early stage. On the basis of this close partnership,
Volkswagen Group China has succeeded in building up scientific cooperation in various areas related to the
automotive industry. For the continuous improvement of the local education system as well as qualification of the
teachers at vocational schools, VGC has also become involved in sponsoring endowed professorships.
Distribution network and marketing competence
As of the end of 2013, Volkswagen Group China operates a network of over 2,200 4S dealers and service
partners who are responsible for sales of the Group brands Volkswagen, Audi and ŠKODA. The sales network of
the Volkswagen brand consists of two sales structures, which are assigned to SVW and FAW-VW. Separate sales
structures for each of the two companies ensure optimum market positioning of their products with the appropriate
target groups. All the import business of the Volkswagen brand is coordinated by Volkswagen Import Company,
which imports the Volkswagen Phaeton, for example.
In the medium term, there are plans to build around 1,000 new dealerships at the same time as boosting the
workforce of the distribution network from 190,000 to 270,000 by 2016.
Communications Volkswagen Group China:
Ms. Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Page 5
Volkswagen Group China
Status Stand
November
März2014
2014
Shanghai-Volkswagen Automotive Company
1. Anting plant
Volkswagen: New Polo, New Santana, Tiguan, Touran, New Lavida, Gran Lavida
ŠKODA: Fabia, Octavia, Superb, Yeti
Components: engines
2. Nanjing plant
Volkswagen: New Lavida, New Passat, Gran Lavida
3. Yizheng plant
Volkswagen: New Polo, New Santana ŠKODA: Rapid
4. Urumqi plant
Volkswagen: New Santana
5. Ningbo plant
Volkswagen: Lamando ŠKODA: New Superb, New Octavia
FAW-Volkswagen Automotive Company Ltd.
6. Changchun plant
Volkswagen: Jetta, New Bora, Golf 6, Magotan, CC
Audi: A4L, A6L, Q3, Q5
Components: engines, gearboxes
7. Chengdu plant
Volkswagen: Jetta, Sagitar
8. Foshan plant
Volkswagen: Golf 7
9. Tianjin plant
Components: gearboxes
Volkswagen FAW Platform Company Ltd.
10. Changchun plant
Components: chassis/axles
11. Chengdu plant
Components: chassis/axles
12. Foshan plant
Components: chassis/axles
Volkswagen FAW Engine Co., Ltd.
13. Dalian plant
Components: engines
14. Changchun plant
Components: engines
VOLKSWAGEN Transmission Company Ltd.
15. Shanghai Jiading plant
Components: gearboxes
Shanghai Volkswagen Powertrain Company Ltd.
16. Shanghai Loutang plant
Components: engines
VOLKSWAGEN Automatic Transmission (Dalian) Co., Ltd.
17. Dalian plant
Components: gearboxes
18. Changzhou plant (MAN
Diesel & Turbo)
Components: turbochargers, superchargers
Communications Volkswagen Group China:
Larissa Braun; Tel: +86 10 6531 5482; Fax: +86 10 8532 2326; Larissa.Braun@volkswagen.com.cn
Page 6
Volkswagen Group China
Chronicle
Status November 2014
Year
Event
1978
The Volkswagen Group and representatives of the Chinese government agree on the local assembly of
Volkswagen brand models on the Chinese mainland.
1985
Establishment of Shanghai-Volkswagen Automotive Company Ltd. VOLKSWAGEN AG holds a 50 percent stake
in the German-Chinese joint-venture..
Status November
2014
License agreement with First Automobile Works in Changchun concerning the production of the Audi 100 in
China.
1988
1997
Establishment of FAW-Volkswagen Sales Company.
1998
SVW celebrates the production of the millionth Volkswagen Santana.
2002
SVW extends contract with Volkswagen and joint venture partner SAIC by a further period of 20 years..
2004
Establishment of Volkswagen Group China.
2008
The Volkswagen Group announces the sale of 1,024,008 vehicles on the Chinese market.
Shanghai Volkswagen inaugurates its fourth automobile plant with a capacity of 60,000 vehicles per year in
Nanjing.
2011
The Chinese government approves the construction of two automobile plants with an annual capacity of
300,000 vehicles each, which Volkswagen is to construct in cooperation with its joint ventures Shanghai
Volkswagen in Yizheng, Eastern China, and FAW-Volkswagen in Foshan, Southern China.
2012
The New Lavida, an A-segment notchback saloon produced by Shanghai Volkswagen, makes its debut at Auto
China.
Following two years of construction, Shanghai Volkswagen inaugurates its new plant at Yizheng, Eastern China,
which is designed for annual production of 300,000 vehicles and has a workforce of 3,700 employees.
The New Santana produced by Shanghai Volkswagen makes its world debut in Wolfsburg. The first generation
had been launched 31 years previously, before the model started its success story in China with almost 4 million
vehicles sold from 1982 onwards.
2013
SVW celebrates a total of 10 million vehicles produced, in the same month, FAW-VW celebrates the
production of 8 million vehicles
New engine plant of FAW Engine in Changchung. EA 888 engines with capacities of 1.8 and 2.0 liters are
produced in an area of 94,000 m2. For the first time in China, these engines meet Euro-6 standards. From mid2014, annual capacity is to reach 450,000 engines for Volkswagen Passenger Cars and Audi models.
Production of the Skoda Superb starts at Ningbo.
For the first time, more than 3 million vehicles are delivered to customers on the Chinese mainland and in Hong
Kong.
2014
FAW-VW: Volkswagen and its joint venture partner FAW extend their contract by 25 years.
Inauguration of a component plant of FAW-VW in Tianjin for the production of dual-clutch gearboxes (DSG).
Annual capacity is 450,000 gearboxes and is due to be expanded to 1.2 million units by 2016.
Communications Volkswagen Group China:
Ms. Braun
Larissa;
Tel: +86
10 6531
5482;
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Larissa
Braun,
Tel: +86
10 6531
5482;
Fax:Fax:
+86 +86
10 8532
2326;
Larissa.Braun@volkswagen.com.cn
Page 7