Volkswagen Group and Shanghai-Volkswagen joint venture started SKD vehicle assembly in Western China, the Group’s 102nd plant worldwide

Urumqi / Wolfsburg, 29-8-2013 — /EuropaWire/ —  Pioneering achievement for Volkswagen Group in Western China

• New factory in Urumqi becomes first vehicle plant in the Xinjiang region
• Developing the west of the country further strengthens the second home
market of China
• Annual production capacity of 50,000 vehicles, own paint shop and body shop
• Prof. Dr. Heizmann: “Volkswagen’s success in Western China is founded on
innovative products, sustainable production and a particularly responsible
approach to the environment and society.”

The Volkswagen Group and the Shanghai-Volkswagen joint venture (SVW) today started SKD vehicle assembly in Urumqi, the Group’s 102nd plant worldwide. Volkswagen is thus underscoring its position as a pioneer on the Chinese automotive market, becoming the first carmaker with a vehicle plant in the Xinjiang region. In Western China in particular, the Group is expecting a strong rise in purchasing power over the coming years.

Production at the Urumqi plant gets underway with the SKD (semi-knocked down) assembly of the Volkswagen Santana. With the planned start of the plant’s own paint shop and body shop, the factory will produce up to 50,000 vehicles per year from 2014.

“Our new operation in the Xinjiang province underscores the close partnership between the Volkswagen Group and the People’s Republic of China”, Prof. Dr. Jochem Heizmann, Member of the Volkswagen AG Board of Management and President and CEO of Volkswagen Group China, said at the start of assembly. “Our vehicle plant in Urumqi provides sustainable impetus for economic and social development in the region and allows us to benefit from expected growth in Western China.” He went on to say this included support for all ethnic groups and was based on a particularly responsible approach to the environment and society. “Production of our new Volkswagen Santana brings mobility and clear future prospects for the people in the region.”

In developing the west of the country the Volkswagen Group is strengthening its position in China over the long term, because this is the region where particularly strong growth in gross domestic product, and therefore purchasing power, is expected over the coming years. There is today already a clear trend westward, while growth momentum in the east of the country has to some extent returned to normal. Volkswagen has taken this trend into consideration by building the production plant in Urumqi.

The Urumqi plant complies with the highest international standards for resource-efficient and particularly environmentally-friendly production. Moreover, Volkswagen Group China will be introducing key elements of the dual training system based on the German model in Urumqi. The workforce at the Urumqi plant will include all ethnic groups in the region.

Volkswagen is also committing to comprehensive training measures and supporting various projects at the site and in the region, such as initiatives in the fields of environmental protection, science, education, health, sport and local cultural activities. The focus is on strengthening interaction between the various communities as well as fostering a German-Sino exchange among scientists and students.

Shanghai-Volkswagen (SVW) currently operates a total of three vehicle plants in Shanghai, Nanjing and Yizheng, which is located in Jiangsu province. A further plant in Changsha in the southern part of Central China is to be completed by the end of 2015.

China is the Volkswagen Group’s largest automotive market. The Group has already been producing in the People’s Republic of China for 30 years. In 2012, the company delivered more than 2.81 million vehicles to customers in the country. In the first seven months of this year, deliveries rose by 18.5 percent compared with the comparable prior-year period to 1.79 million vehicles. The Group is building five further plants in China this year and over the next few years. By 2018, the number of employees will have increased from the present 75,000 to 100,000, and annual production capacity will have risen from 2.6 million to over four million.

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Volkswagen Group and Shanghai-Volkswagen joint venture started SKD vehicle assembly in Western China, the Group’s 102nd plant worldwide