Twenty years Volkswagen in China - from Santana to Touran

Press Release

20th Anniversary Celebration of Shanghai Volkswagen

20 years after starting its operations in China, Volkswagen is once again expanding its local product line in what is its most important foreign market. At a 20th anniversary celebration in Shanghai on Friday, Dr. Bernd Pischetsrieder, Chairman of the Board of Management Volkswagen AG, told guests that the Touran, whose spacious design has placed it among Europe's most popular multi-purpose vehicles, promises to appeal to many Chinese customers, further fueling the growth of China's dynamic market. The Touran will be introduced into the Chinese market within this year.

Pischetsrieder went on to say that „China is one of the most important growth markets worldwide for the automobile industry. Even with regard to the past six months, we are confident that the Chinese market will continue its steady and healthy growth. As China's market leader, we are resolved to outsmart our competitors and seize opportunities for our partners and us when they arise."

To commemorate the signing of the joint venture contract 20 years ago, the two joint venture partners gathered for a festive event, attended among other prominent guests by Dr. Ferdinand Pi?ch, Chairman of the Supervisory Board Volkswagen AG, Dr. Folker Weißgerber, Member of the Board of Management Volkswagen AG and chief responsible person for business in China, as well as Dr. Bernd Leissner, President of Volkswagen Group China. Present from SAIC's side were Chen Xianglin, Chairman of SAIC, and Hu Maoyuan, President of SAIC, who were joined by Han Zheng, Mayor of the City of Shanghai, as well as numerous employees of Shanghai Volkswagen.

On the 12th of October 1984, Volkswagen became the first European auto manufacturer to come to China and sign a joint venture contract with a Chinese counterpart. Its partnership with Shanghai Automotive Industry Corporation rapidly developed into a model of international cooperation, with the first cars rolling off the Shanghai Volkswagen assembly line no later than spring of 1985.

In the following years, Volkswagen steadily expanded its model range, which today covers almost every segment of the Chinese car market. Aside from the Santana and Santana 3000, Shanghai Volkswagen also produces the Passat, Polo and Gol. As of this year, Shanghai Volkswagen has also begun manufacturing the Touran.

At the Changchun-based joint venture FAW-Volkswagen, which was founded in 1990, Volkswagen produces its Jetta, Bora, and Golf models, as well as the Audi A6 and A4. The Phaeton, Touareg, Sharan, New Beetle, Audi A8, Audi A4 Cabriolet, Audi TT and Audi allroad quattro make up Volkswagen's import fleet, which further diversifies and complements its extensive model range in China.

Today, Volkswagen has over 1,000 distributors across China, boasting the largest and densest distribution, retail and service network of any car manufacturer in the country. Its cars remain the most popular in the nation, with one out of four auto purchases being a Volkswagen product.

Last year, approximately 698,000 cars (513,000 cars in 2002) of the Volkswagen and Audi brand were delivered to clients. Cumulatively, Volkswagen and its partners have produced and sold around four million vehicles up to the present.

To further complement its sales activities in China's prospering private market, Volkswagen Finance (China) has begun as of October to offer Volkswagen and Audi customers new, groundbreaking ways of financing their cars. Volkswagen has hereby become the first auto manufacturer in China to provide auto-financing solutions by way of an independent, wholly owned financial service company.

To further increase the competitiveness of its products, Volkswagen is pursuing its strategy of raising the local content in its cars. Together with its joint ventures, Volkswagen employs approximately 20,600 people in China. Volkswagen's pioneering efforts in China have created further jobs among the country's 400 national and international series suppliers.