Volkswagen Group China

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Volkswagen Group China is Volkswagen Group's subsidiary in China. VW controls about 17% of the Chinese market, the 2nd largest foreign automaker. The Chinese market is VW's second-largest, only behind Germany. The company has been particularly successful selling Taxis, Police cars & vehicles to the Chinese Government.

Volkswagen Group China imports the following:

VW has two joint ventures in China one with FAW & SAIC.

1 FAW-Volkswagen
- 1.1 Audi China
2 Shanghai-Volkswagen
- 2.1 Skoda Auto
3 External links
4 Gallery

In the FAW JV Volkswagen AG has 20% stake, Audi AG has 10% stake and Volkswagen Automobile (China) Investment Co. Ltd. 10% stake in FAW-VW and FAW has the remaining 60%, the main FAW-VW factory is in Changchun, Jilin Province.

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In 1986, Audi AG made an initial official contact with China and together with FAW, began a joint feasibility study of certain technology in Changchun. Over the following two years, technical development for Audi cars continued in Changchun and in 1988, FAW was granted a manufacturing license by Audi. In the same year, a total of 499 Audi cars were assembled in Changchun.

In 1990, FAW installed assembly lines for Audi cars with a daily capacity of 50 units. In 1993, Audi joined the joint venture of FAW-VW. In 1995, FAW-VW began to prepare for the production of the Audi 200 V6 - a model developed only for China. In the following year, the Audi 200 V6 came off the production line.

In 1996, Audi established an after-sales service division in Beijing. Audi technicians were located in the No. 1 service station of FAW, providing training for the Chinese employees as well as technical support. In the same year, Audi established an expert team composed of professionals in automobile sales, marketing development, public relations and after-sales service, to improve the market development of Audi in China.

In 1999, the Audi A6, produced jointly by Audi and its partner, FAW Group, came off the production line at FAW-VW, Changchun. The Audi A6 made up for the absence of premium cars produced in China. In the same year, Audi sold 6,911 units in China.

In 2000, the first Audi standard dealer's show room was open in Beijing, through which Audi introduced the world standard sales and service system into China. In the same year, Audi's sales in China increased one and a half times compared to the previous year, reaching 17,451 units.

In 2001, the Audi A8 was officially launched in China. This symbolized the landing in China of Audi's flagship vehicle. Then, the new Audi A4 model and the Audi TT sports car were also launched in China, introducing more personalized choices for Chinese customers. In the same year, Audi introduced some world standard components and accessories including xenon headlights, parking heaters and electric seats, which were fitted in the updated Audi A6 model in 2001. Audi's sales in China increased to 27,890 units in 2001.

In 2002, Audi fitted the Audi A6 with its proprietary multitronic? technology. The new Audi A6, with 23 updated parts, was launched. The two updates of Audi that were in line with the international updates maintained for Audi, the leading position in the premium car market in China. In the same year, Audi's 4WD vehicle was launched in China; this true 4WD for the use of both on-road and off-road further consolidated Audi's competitive strength in China. Audi's sales in China reached 36,492 units that year.

In 2003, the Audi A4, as the top range product of the world premium brands B-class vehicles, was put into production in China, a symbol of Audi's extensive production expansion in China. In July that year, the new Audi A8, which set a new standard in world premium cars, was also launched in China. In October 2003, the launches of both the executive model and sports model of the Audi A6 again proved the success of Audi in China. In the same year, the sales of automobiles in China increased by 69.6% as a whole, reaching 2.27 million units; the total sales of Audi vehicles reached 63,531 units, an increase of 71.5%.

In April 2004, Audi launched the new Audi A4 model which offered not only more color choices, but also more personalized accessories including an entertainment package, sports package, winter package and genuine leather package etc. The new Audi A4 model became the ideal choice for the elites who pursue a high quality and individual life. In May the same year, the Audi A8L 6.0 quattro 4WD, the high-class flagship product of Audi, was launched in China. This model is the premium car with the most advanced technology and best performance in the global market. Its launch further strengthened Audi's leading position in the Chinese premium car market. China is currently the fourth largest market for the Audi A8. In August 2004, the China-made Audi A6 2.5 TDI diesel was officially launched. Under the trend of a general slide in the Chinese automobile market in that year, Audi's annual sales increased by 0.8%, reaching 64,018 units (among them, 46,177 units of the China-made Audi A6 and 15,841 units of the China-made Audi A4.)

In April 2005, the new China-made Audi A6L was launched. As currently the most luxurious and advanced sedan which best suits the Chinese situation, the new Audi A6L carried with it the Audi quality: prestigious design, excellent sporty characteristics, spacious interior and an outstanding safety system greatly improving the driving experience in terms of convenience, dynamics and comfort to an unprecedented level. In October, the launch of the new Audi A4 further consolidated and completed the Audi product series in China. Despite the fierce market competition, Audi achieved excellent sales results in China that year. Sales reached 58,878 units (according to AAK statistic method, i.e., the sales of vehicles to the end users), an increase of 9.6%. China became the third biggest market for Audi outside of Germany.

Excerpt from http://audi.ogilvy.com.cn/en/about/history/audi_inchina/audi_inchina.html

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In 1984 a Joint Venture was established between Volkswagen AG & Shanghai Automotive Industry Corporation, each share a 50/50 share of the Shanghai-Volkswagen Automotive.

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