Volkswagen Board of Management Member Neumann: Growth in China from new products and expanded production
Volkswagen will continue its systematic growth course in China. This was announced by Dr. Horst Neumann, Member of the Board of Management of Volkswagen AG for Human Resources, in Shanghai on Thursday, the day when the five millionth vehicle produced by Shanghai Volkswagen (SVW) left the assembly line. The occasion also marked the 25th anniversary of the Volkswagen Group’s first German-Chinese joint venture. Dr. Neumann said: ‘The Group is investing a total of four billion euros in new products and production capacity expansion between 2009 and 2011 in order to extend Volkswagen’s market leadership in China further.’
These investments will be financed from the cash flow of both Volkswagen joint ventures. Together with FAW-Volkswagen in Changchun, the second joint venture, the Group has delivered more than eight million vehicles from the Volkswagen, Audi and Škoda brands in China since 1984. The President and CEO of Volkswagen Group China, Dr. Winfried Vahland, commented: ‘Shanghai Volkswagen has delivered an outstanding performance in 25 years. Today the joint venture has the largest and most modern car manufacturing capabilities in China. Our growth course in this market plays an important role in achieving the ambitious targets of the Volkswagen Group as it heads towards becoming the world’s number one automaker.’
Dr. Neumann said: ‘Established in October 1984, Shanghai Volkswagen was one of the first joint ventures to be set up as China opened its economy. Volkswagen’s commitment was a far-sighted decision.’ He added that the success of Shanghai Volkswagen was closely linked with the development of its employees. ‘As an attractive international employer, Volkswagen also focuses on fostering the competences of its employees in China,’ Dr. Neumann emphasized. Shanghai Volkswagen has frequently been recognized as an attractive employer. The joint venture was named one of the ‘Best Companies to Work for in China’ in 2007.
Over the last 25 years, SVW has increased its share capital from 160 million to 11.5 billion RMB (1.13 billion euros). Total assets have grown from 350 million to 32.3 billion RMB (3.18 billion euros). Shanghai Volkswagen with its headquarters in Anting International Auto City has four vehicle production plants, one engine plant, a technology center and a design center. The SVW product range includes a total of eleven models from the Volkswagen brand (Polo Jinqing, Polo Jinqu, Cross Polo, Lavida, Santana, Santana Vista, Passat New Lingyu and Touran) and Škoda brand (Fabia, Octavia und Superb).
SVW passed the one million vehicle mark in 1998. Further milestones on the way to today’s production anniversary of five million vehicles came in June 2002 (two million), July 2005 (three million) and January 2008 (four million).
- Volkswagen Group