Volkswagen and FAW Co., Ltd. started production at the end of 2005


Recently, Volkswagen FAW Platform Parts Co., Ltd. laid the foundation for Changchun High-tech Development Zone. On the same day, Volkswagen and FAW Group also signed a number of new agreements to strengthen cooperation between the two parties and expanded their cooperation.

The parts and components company was jointly invested by Volkswagen Group and China FAW Group Corporation, and Volkswagen Group and FAW Group each held 60% and 40% respectively. The total investment of 1.42 billion yuan is expected to be put into production by the end of 2005.


The main products after being put into production are the front axle and sub-frame assembly for cars and the rear axle assembly, including the suspension system, steering system, and brake system of the car. Yang Lin, public relations department of Volkswagen (China) Co., said in an interview with this reporter that the company will also provide parts and components for Shanghai Volkswagen in addition to serving FAW-Volkswagen.

The newly signed expansion cooperation agreement includes intent documents for expanding product lines and introducing new products. Among them, the two sides signed a technology transfer agreement for commercial vehicles. According to the agreement, FAW-Volkswagen will enter the domestic business car market. For the specific models to be produced, the public has not made any clear statement. Yang Lin said that the new product is currently only locked in commercial vans, and the name it will use in China in the future has not yet been determined. The new commercial vehicle will be produced by FAW Group's factory in Jilin City.

In addition, Volkswagen also said that Dalian's engine project in cooperation with FAW Group will produce low-emission, low-fuel-consuming engines, but this project is still in the process of approval by the relevant government departments. It is also understood that the investment required for the above new projects belongs to the total investment plan of 5.3 billion Euro that has been announced by Volkswagen Group and will be realized in China in 2008.