Volkswagen pumps 1B euros into China electric vehicle center

News Summary

  • The rationale behind the strategy seems to stem from the German auto giant’s urge to better answer China’s fast-changing consumer needs.“This will leverage synergies in the development process and integrate state-of-the-art local technologies into product development at an early stage,” the company said in its announcement.
  • Competitors range from internet-native players like Nio, XPeng and Li Auto to new EV subsidiaries of established carmakers, like Geely’s Zeekr, not to mention dominant players BYD and Tesla.100%TechCo will be based out of Hefei, the capital of China’s eastern Anhui Province where electric vehicle production is booming.
  • The center is already expected to “play a major role” in the development of a future Volkswagen brand model to be launched in 2024.The move came just months after Volkswagen’s other efforts to drive localization for Chinese consumers.
  • For decades, foreign automakers entered China by setting up joint ventures with local partners until Tesla became the first wholly foreign-owned automaker in the country.Volkswagen to plough €2.4B into vehicle automation in China and form JV with Horizon Robotics
  • Marcus Hafkemeyer, chief technology officer of Volkswagen Group China, will head the new firm as CEO.Driven by 2,000 staff, the facility named 100%TechCo plans to merge vehicles and components R&D with procurement.
Auto Shanghai, which is underway this week, is a yearly opportunity for carmakers and auto suppliers to flex their muscles and show their commitment to China, the worlds largest auto market.At thi [+2766 chars]