The German manufacturer Volkswagen, very present in China, will invest one billion euros in a new development center for electric vehicles in the Asian country, the largest automotive market in the world.
“The company is investing approximately one billion euros in a new state-of-the-art development, innovation and supply center for fully connected intelligent electric vehicles,” the group said in a statement released at the Shanghai Motor Show (East). Porcelain).
This new structure should see the light of day at the beginning of 2024 and will be dedicated to the design of cars for the Chinese market. The center will be located in Hefei (to the east), a large city located 400 kilometers west of Shanghai. On this occasion a new company will be established which will bear the name “100% TechCo”. It will combine vehicle and component research and development teams with dedicated purchasing departments.
Drive profitability
“The goal is to adapt the group’s vehicles even faster to the wishes of Chinese customers and reduce time to market,” it said in a statement issued at the Shanghai Motor Show.
“By constantly pooling development and supply capabilities and integrating local suppliers at an early stage, we will significantly accelerate our pace of development,” said Ralf Brandstätter, Volkswagen Group Board Member for China.
According to him, the new structure will strengthen the “profitability” of the manufacturer.
Various investments in China
Volkswagen announced in March 2022 an agreement with Chinese partners for the creation of two joint ventures in order to strengthen its position in electric batteries.
In 2020, the German giant announced in China a massive investment of more than 2 billion euros, half and half in a vehicle company and a local battery manufacturer, Gotion High-Tech.
China is at the forefront in the race for “green” cars thanks to a policy of incentives in the electricity sector. Manufacturers, both Chinese and foreign, compete for market share.
Volkswagen has seen its sales in the country increase strongly in recent years in electric vehicles and has made it a key strategy, following dieselgate. The manufacturer has presented this Monday its latest electric model, the ID.7, aimed at professionals and long trips with 700 kilometers of autonomy.
Source: BFM TV
