Executives from SAIC Motor and Volkswagen shake hands after the two companies signed a deal on Nov 26 to extend their joint venture to 2040. [Photo/jiading.gov.cn]
Chinese automaker SAIC Motor Corporation and Germany's Volkswagen Group signed an agreement on Nov 26 to extend their joint venture, SAIC Volkswagen, by 10 years until 2040.
This renewal underscores their commitment to a partnership that began in 1984, when they established the oldest extant automotive joint venture in China. It also highlights the companies' confidence in the joint venture and the future of China's automotive industry.
The renewed agreement focuses on three key areas:
China-Specific Products: The collaboration will develop new models, including electric and plug-in hybrids, tailored for the Chinese market. By 2030, SAIC Volkswagen plans to launch 18 new models, with 15 designed specifically for China. In the fuel vehicle segment, upgrades like the new Teramont Pro are set for 2025. The new energy sector will see expanded offerings, including Audi's first high-end electric vehicle in 2025.
Industrial Layout Upgrades: The partners will enhance SAIC Volkswagen's production capabilities, focusing on smart, connected new energy vehicles. The Anting base is transforming into a center for electric vehicle production and innovation. This shift aims to integrate the industrial chain and foster a new ecosystem.
Zero Carbon Commitment: By 2030, SAIC Volkswagen is committed to reducing carbon emissions by 25 percent from 2018 levels. The company is advancing green technologies and sustainable practices across its operations.