Daily Management Review

Volkswagen To Develop New Electric Vehicles Factory In China


04/25/2019




Volkswagen To Develop New Electric Vehicles Factory In China
German automaker Volkswagen plans to make investments of 5.06 billion yuan ($750.8 million) for the construction of a new electric car factory in eastern Hefei city in China through its Chinese joint venture in the country with China’s Anhui Jianghuai Automobile Co (JAC), according to reports quoting local Chinese authorities.  
 
An approval from the environmental authorities to construct a factory that would be capable of manufacturing 100,000 all-electric battery cars a year was obtained by the Volkswagen and JAC according to a document that was posted online by the Hefei Economic and Technological Development Area
 
The numbers that were included in previous official documents were confirmed by Volkswagen Group China on Thursday and said that the first model would soon be launched by the JAC-Volkswagen joint venture.
 
Development plans for the plant was confirmed by a spokesperson for the joint venture and said that the approval represented an “orderly advancement of the project”, and that company would launch later this year the E20X, the joint venture’s first electric model.
 
A pledge to increase manufacturing and bringing to markets more zero-emission vehicles as part of its growth strategy in the country has been made by the German company which is the largest foreign auto manufacturing company in China. In 2018, the company sold a total of of 4.21 million cars on the mainland and Hong Kong.
 
In the next 10 years, Volkswagen has made plans for the manufacturing of more than 22 million electric cars, the company had announced earlier, and had said that manufacturing them in China would account for more than half of them. This year alone, the company plans to launch 14 new electrically powered vehicle models for the Chinese market.
 
The launch of a research and development center was announced by VW’s joint venture with JAC last year, which was approved by Chinese authorities and the companies in 2017.  By 2020-2021, it also planned to introduce the SEAT brand to China.
 
There were reports in the media earlier this month that claimed that Volkswagen wanted to accelerate its electric vehicle development and was in talks with South Korean battery maker SK Innovation for that purpose.
 
There was a contraction in the second largest care market in the world – China, last year which was the first for the market since the 1990s. But there has been continued and robust growth in the new energy vehicle segment with a 61.7 per cent growth in NEV sales to 1.3 million units in 2018.
 
This year, new energy vehicle sales could hit 1.6 million units, said the China Association of Automobile Manufacturers.
 
Volkswagen has started building a $2.5 billion new energy vehicle plant in Shanghai with SAIC Motor Corp Ltd, which will make VW’s luxury Audi AG brand cars. The new manufacturing facility would possess an annual capacity of churning out 300,000 cars annually and production would begin from 2020, SAIC Volkswagen has said.
 
(Source:www.nytimes.com)






Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”