VW has long been the market leader in China since the Communist party chose it to help set up First Auto Works as the supplier of government vehicles.
The five millionth vehicle produced by Shanghai Volkswagen (SVW) left the assembly line late last week. The occasion also marked the 25th anniversary of the Volkswagen Group’s first German-Chinese joint venture. Established in October 1984, Shanghai Volkswagen was one of the first joint ventures to be set up as China opened its economy.
Together with FAW-Volkswagen in Changchun, the second joint venture, VW Group has delivered more than eight million vehicles from the Volkswagen, Audi and Škoda brands in China. China is now VW’s largest market, and the largest auto market in the world.
Between 2009 and 2011, VW will invest in a total of €4 billion in the world’s largest automotive market to introduce new vehicles and expand its production capacities in China. The expansion will be financed from the cash flow of VW Group’s Chinese joint-venture companies, which are required by Chinese industrial policies.
The U.S. remains the only industrialized nation in the world without an industrial policy to protect wealth by creating and protecting manufacturing industries, as job losses continue and unemployment reaches highs not seen since the Great Depression.
“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,” said Dr. Winfried Vahland, president and CEO of Volkswagen Group 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.”
VW is in a close battle with Toyota Motor Corporation and General Motors Company for the title of world’s largest automaker this year.
Over the last 25 years, SVW has increased its share capital from 160 million to 11.5 billion RMB (€1.13 billion). Total assets have grown from 350 million to 32.3 billion RMB (€3.18 billion). 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 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 the production anniversary of five million vehicles came in June 2002 (two million), July 2005 (three million) and January 2008 (four million).