Written by Cláudio Afonso | LinkedIn | X
Volkswagen Group announced Wednesday it is extending its joint venture in China with SAIC Group until 2040. The joint venture, named SAIC-Volkswagen, plans to launch 18 new models by the end of the decade.
In the first nine months of the year, Volkswagen’s sales in China dropped by 12%, while sales in Europe declined by 1%. In September, the company announced that it is optimizing costs and enhancing efficiency across various departments and projects.
Volkswagen’s sales in China hit a record 4.23 million units in 2019, making up 40% of its global total. However, the figure has since dropped, falling to 3.23 million units in 2023.
SAIC Volkswagen was established in 1984 and it was China’s first passenger car joint venture. The joint venture plans to release 18 new models by 2030, including 15 tailored for the Chinese market, SAIC Volkswagen said in a statement.
From 2026, SAIC Volkswagen aims to introduce two compact EVs developed on its China-focused CMP platform, alongside three plug-in hybrid models and two extended-range electric vehicles (EREVs).
In Germany, workers’ representatives have urged for an agreement before Christmas, as Europe’s largest carmaker warns of the potential closure of “at least three” plants causing significant layoffs.
Volkswagen’s planned cost-cutting program was “unavoidable” to address longstanding “structural problems”, CEO Oliver Blume said in a recent interview citing, “weak market demand in Europe and significantly lower earnings from China.”
Written by Cláudio Afonso | LinkedIn | X
