FAW-VW reaches deal with VW Group worth “tens of bns“ of RMB_

FAW-VW reaches deal with VW Group worth “tens of bns“ of RMB

2019/03/12 18:27报道国内汽车行业消息，针对国内外汽车行业人来自河北省

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This article appeared in the November 2018(Vol.24,

This article appeared in the November 2018(Vol.24, No.36) issue of China Automotive Review Weekly, our weekly publication in English exclusively focused on the Chinese auto industry.

SHANGHAI – FAW-Volkswagen Automotive Co., Ltd. and parent company Volkswagen Group signed a Memorandum of Cooperation here on November 6 on the sidelines of the ongoing China International Import Expo (CIIE) where the joint venture will engage in a significant import program covering parts and vehicles in 2019.

The Memorandum of Cooperation covers three purchase agreements. FAW-Volkswagen will purchase completely knocked down (CKD) parts for the production of Volkswagen models. It will also purchase CKD parts from Audi AG for the production of Audi models. Under the third agreement, it will import fully built Audi models from Audi AG for sale on the Chinese market. All deliveries will take place in 2019.

The value of the deal was not revealed but sources close to the matter indicate that it will be on the order of "tens of billions" of RMB.

"With the Memorandum we are demonstrating our confidence in further solid growth of the automotive market in China," said Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG as well as President and CEO of Volkswagen Group China.

The document was signed by Karsten Schnake, Executive Vice President Purchasing at Volkswagen Group China, on behalf of Volkswagen AG, and Liu Yigong, Member of the Board of Directors and President of FAW-Volkswagen.

Volkswagen Group was the largest exhibiting automaker at the CIIE, with 25 models on display from its Volkswagen, Volkswagen Commercial Vehicles, Audi, Škoda, Porsche, Bentley and Lamborghini brands demonstrating the latest in e-mobility, connectivity and mobility solutions.

The Audi e-tron will begin local production at FAW-Volkswagen in 2020 after hitting the market as an import in 2019.

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The above article appeared in the November 2018(Vol.24, No.36) issue of China Automotive Review Weekly, our weekly publication in English exclusively focused on the Chinese auto industry.