On the sidelines of the Shanghai Motor Show, Volkswagen will invest one billion euros in a development center for electric vehicles in China.
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 world’s largest automotive market.
“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 motor show. from Shanghai (East China).
This new structure should see the light of day in early 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. A new company will be established on this occasion and will bear the name “100%TechCo”. It will combine research and development teams for vehicles and components with departments dedicated to purchasing.
Boost profitability
“The objective is to adapt the group’s vehicles even more quickly to the wishes of Chinese customers and to reduce time to market,” he said in a statement released at the Shanghai Motor Show.
“By consistently bundling development and supply capabilities and integrating local suppliers at an early stage, we will significantly accelerate our pace of development,” said Ralf Brandstätter, member of the group’s board of directors. Volkswagen for China.
According to him, the new structure will strengthen the “profitability” of the manufacturer.
Several 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 in a local battery manufacturer, Gotion High-Tech.
China is at the forefront in the race for “green” cars thanks to an incentive policy in the electric sector. Manufacturers, both Chinese and foreign, are vying for market share.
Volkswagen has seen its sales in the country increase sharply in recent years in electric vehicles and has made it a key strategy, following dieselgate. This Monday, the manufacturer unveiled its latest electric model, the ID.7, which targets professionals and long journeys with 700 kilometers of autonomy.
