German media: Volkswagen achieves self-research and production of new models in China

The German Volkswagen Group stated that with the establishment of the Hefei R&D Center, the company can now complete the entire process from research and development to production in China, hoping to strengthen its competitiveness in the Chinese market.

Volkswagen said on Tuesday, November 25, that setting up a technology R&D center in Hefei means that Chinese consumers can now buy fully domestically produced Volkswagen models. This is the first time the company has completed the full R&D of a new model outside Germany.

The Hefei R&D center is its only one focused on electric vehicle R&D and will also play a role in exports from China to Southeast Asia and the Middle East.

Beiraid, a director of Volkswagen Group China, said, "We develop technologies directly in regions where they are applied, to enhance the ability to respond quickly to local needs."

Volkswagen Group CEO Oliver Blume emphasized, "This milestone makes us faster, more efficient, and closer to our customers," he said, adding that Volkswagen's goal is to become a technological driver in the global automotive industry in China, the world's largest car market.

Volkswagen Strategy: "In China, for China"

In recent years, German automakers have faced huge pressure from domestic competitors in the Chinese market, and their global sales and profits have also been affected by the downturn in the Chinese market. Two years ago, the Volkswagen brand was overtaken by BYD in the Chinese market and lost its leading position. According to data from consulting firm Jato Dynamics, Chinese automakers accounted for nearly 60% of the domestic market last year, compared to just 35% in 2019.

At this year's Munich Motor Show, Volkswagen Group CEO Blume said that the practice of producing most cars in Germany and exporting them worldwide "is no longer viable." Therefore, we have developed a clear China strategy - "In China, for China," he said, "this is our new strategy."

The newly established Hefei R&D center is expected to shorten Volkswagen's R&D time by 30%, and with localized architecture and early involvement of suppliers, it can reduce the cost of new models by 50%.

The new electric vehicle platform is planned to be completed by 2026, and the price of electric vehicles produced on this basis is about 20,000 euros. In April 2024, Volkswagen set a target to sell about 4 million cars in China and achieve a profit of 3 billion euros by 2030.

Sources: DW

Original: www.toutiao.com/article/1849806707490824/

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