The new company, 100%TechCo, is scheduled to be operational in early 2024 and will have more than 2,000 procurement and R&D staff in the future.
(Image credit: Volkswagen China)
German auto giant Volkswagen is increasing its investment in China to stay relevant in the world's most competitive electric vehicle market.
Volkswagen is investing around 1 billion euros ($1.1 billion) in a new company with the project name "100%TechCo"in Hefei, Anhui province in eastern China, according to a press release from the company yesterday.
The new company will focus on the development, innovation and procurement of smart connected electric vehicles, with functions including vehicle and component development, and is expected to reduce the development times of new products and technologies by about 30 percent, the release said.
The new company, which is scheduled to be operational in early 2024, will comprise more than 2,000 employees from procurement and R&D, with Marcus Hafkemeyer, Chief Technology Officer of Volkswagen Group China, as CEO.
The establishment of 100%TechCo is a milestone in Volkswagen's "in China for China" strategy, the automaker said.
The new company will integrate advanced technologies from local suppliers at an early stage of product development, enabling model offerings to be more responsive to Chinese customer needs, it said.
The 100%TechCo will also help bring Volkswagen's joint ventures in China -- SAIC Volkswagen, FAW Volkswagen and VW Anhui -- into closer synergy with their R&D programs and optimize profitability, according to the release.
At the Shanghai auto show, which began yesterday, Volkswagen Group brands brought 20 electric models, including the ID.7, which made its world debut.
By 2030, Volkswagen will have more than 30 all-electric models across its brands, it said.
(1 $= EUR 0.9113)
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