China Plays Key Role In Volkswagen Group's E-Mobility Strategy

April 15, 2019 by Volkswagen

•China to contribute more than half of Group's planned output of 22 million BEVs by 2028

•Further enhance internal research power of Volkswagen Brand, Audi and Volkswagen Group China in new ONE R&D structure

•Diess: 'China and our strong Chinese partners will be central to our plans to deliver cleaner, safer and more intelligent individual mobility for millions of '

•Wöllenstein: 'Volkswagen Group China is going full-scale electric in 2019 with an offering of 14 NEV models this year – providing customers with unprecedented choice '

Shanghai, April 15, 2019. China will play a key role in the Volkswagen group's global transformation and its accompanying decarbonization program. Thus, this year will see an intensified roll-out of new energy models. Volkswagen Group China aims to produce more than half of the group's global objective of 22 million BEVs by 2028. To speed up its e-offensive, it will also launch a new joint venture in charging infrastructure. All this will lay the foundation for wide acceptance of e-mobility. Meanwhile, in the area of future technologies, Volkswagen Group China is combining its research power, with Volkswagen brand, Audi and Group R&D working together within the new ONE R&D structure.

Dr. Herbert Diess, Chairman of the Board of Management, Volkswagen AG, said: 'We are fulfilling our promises, not only to comply with the new regulations in China, but also to reduce the auto industry's impact on our society through clean mobility and better production processes. For this plan, China is of great importance.'

Dr. Stephan Wöllenstein, CEO of Volkswagen Group China, said: 'Volkswagen Group China is going full-scale electric in 2019. We will be offering 14 NEV models in China this year – providing customers with unprecedented choice. With the first two models based on the MEB platform launching next year and our investment in digitalisation, we and our partners have laid the foundation to redefine what mobility means in China, and transform it.'

China at forefront of Group's drive towards electrification and carbon neutrality

Volkswagen Group aims to produce 11.6 million BEVs in China by 2028, more than half the group's global objective of 22 million. Initiatives with all three Chinese vehicle production joint ventures – FAW-Volkswagen, SAIC VOLKSWAGEN and JAC Volkswagen – will enable this target to be reached.

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With construction progressing on MEB platforms at SAIC VOLKSWAGEN in Anting and FAW- Volkswagen in Foshan, Volkswagen will have the technical capacity to produce an additional 600,000 pure electric vehicles a year in China when the two plants become operational next year.

In addition, the JAC Volkswagen joint venture is jointly working on its own e-car platform together with SEAT for the production of smaller NEVs.

The Group is backing this up with strong efforts to lower the ecological footprint of its 33 production plants in China. Last year alone, CO2 emissions from its China production activities were slashed by 13%, saving 390,000 tons of CO2.

Holistic approach to improving whole e-mobility ecosystem

A further e-mobility focus is on provision of the necessary infrastructure, with a new charging joint venture to be set up that will result in greater freedom and recharging convenience for the rapidly growing number Chinese NEV owners during their travels. The partnership with Star Charge, FAW and JAC will offer private charging wall boxes from the end of this year and a wide network of public charging. The experience will be made even easier through in-vehicle connectivity provided through the Group's Mobility Asia services, which will allow drivers to find the most convenient charging station.

New technology for the future, new models for today

Under its new ONE R&D structure, Volkswagen Group China has strong internal research power with Volkswagen brand, Audi and Group R&D working together. It is another example of the collaboration across the Group to achieve synergy. In addition, this is a significant move to further strengthen its national R&D capabilities and capacities to develop in China for China.

Meanwhile, current customer demands for the latest advances in connectivity, efficiency, safety and comfort will be met with a strong portfolio of new models being released in China this year across all the Group's brands, including a further eight SUV models – five of them locally produced.