Volkswagen Group
China

Photo: Showcar BUDD-e
Showcar BUDD-e

As early as 1978, Volkswagen Group started contacts with China. The first Santana was produced in Shanghai in April 1983. In October 1984, SAIC Volkswagen Corporation Ltd, the first joint venture of Volkswagen Group in China, laid foundation in Shanghai. In February 1991, FAW-Volkswagen Corporation Ltd was established in Changchun, creating Volkswagen Group’s second joint venture in China.

The business scope of Volkswagen Group in China includes the production, sales and services of complete vehicles and parts, such as engines and transmissions. All of the Group auto brands have a business presence in China through Volkswagen Group China and its subsidiaries.

Since entering the Chinese market, Volkswagen Group has taken the leading market position in China. In 2016, together with its two joint ventures – SAIC VOLKSWAGEN and FAW-Volkswagen, Volkswagen Group China delivered 3.98 million vehicles to customers in the Chinese mainland and Hong Kong.

In order to adapt to the fast development of China’s automobile market, Volkswagen Group will invest EUR 22 billion in China from 2015 to 2019, among which two thirds of this figure will be spent on projects relating to sustainable development, such as developing more efficient products and powertrain technologies, as well as achieving more environment-friendly production. 

As the most reliable partner of China, Volkswagen not only provides high-quality products and reliable services to Chinese customers, but also spares no effort in carrying out its corporate social responsibilities. In 2014, Volkswagen Group China announced initial funding of RMB 50 million for its CSR Projects in China. In November 2016, Volkswagen Group China announced a further RMB 50 million to continue to support its CSR Projects in sustainable mobility, environment protection and social care, and to expand the group’s contribution to China’s society and economic development.

By continuing to bring the most advanced and environmentally sound technologies and products to China, as well as providing professional services for an even higher customer satisfaction, Volkswagen Group is driving toward a sustainable future with China’s automobile industry.

2016 Highlights

“We at Volkswagen Group China are enhancing our efforts in terms of e-mobility to meet the demands of the customers.”

Volkswagen Group and Anhui Jianghuai Automobile Explore Future Cooperation of NEV in China

On September 7th, 2016, Volkswagen AG and Anhui Jianghuai Automobile Co., Ltd. (JAC) today signed a Memorandum of Understanding (MoU) in Wolfsburg, to determine the next phase of negotiations between the two companies in order to achieve long-term cooperation in the joint development of new energy vehicles (NEV) in China.

According to the MoU the parties intend to enter into discussions to evaluate the perspectives and feasibility of a new joint venture company (“JV”), focusing on NEV products, to carry out full scope cooperation in areas including research and development, manufacture, sales and mobility services of the NEV and parts in order to improve fuel efficiency. Main goal will be to further develop zero-emission mobility.

Anhui Jianghuai Automobile Co., Ltd (JAC) is a comprehensive automobile company encompassing R&D, production, sales and service and other businesses related to commercial and passenger vehicles, including powertrains. It has two vehicle brands, “Jianghuai” and “Ankai”.

JAC delivered 333,639 vehicles and chassis in the first six months of 2016 (+14.15%), with new energy vehicle sales increased massively compared to last year (+261%), while SUV sales maintained stable growth (+30%).

Volkswagen Group China Environmental Education Fund Established to Support China’s Environmental Education Activities Nationwide

German Chancellor Angela Merkel joined Chinese Premier Li Keqiang in Beijing on June, 14th, 2016, to witness the signing of an agreement between Volkswagen Group China and the Chinese Ministry of Environmental Protection’s China Environmental Protection Foundation. The agreement creates a new fund supporting environmental education training for teachers across the country.

The “1,000 Environment-Friendly Youth Ambassadors Action Program” was initiated, is managed and executed by the Ministry of Environmental Protection’s Center for Environmental Education and Communication (CEEC). Volkswagen is the sole sponsor of the RMB 10 million phased program, which will run for at least 3 years, from 2016 to 2019. Stated goals include: training 1,000 teachers nationwide each year on environmental issues and environmental education methods, enabling them to develop and tailor curriculum; as well as extending environmental education and eco-planning skills to thousands of students, empowering them to make an impact in their schools and communities.

Volkswagen will open its China manufacturing facilities to teacher visits, sharing best practices and key learnings in environmental protection.

Volkswagen Plants in China are Taking Energy Saving and Emission Reducing Measures

Combined Heat and Power Project (CHP) of SAIC VOLKSWAGEN  

CHP of SAIC VOLKSWAGEN is the first project to implement in industry in Shanghai while Anting plant is the first Chinese factory of VWAG to use this system. The natural gas is its primary energy and it can produce electricity and steam to supply the heat. The project officially started in April 2015 and after the start of the system in February 2016, it can provide 26 megawatts of electricity and 60 tons per hour steam when enabled which can meet most of the electricity demand of CPA3 and the steam demand of all the Anting plant.

CHP of SAIC VOLKSWAGEN realized the ladder use of natural energy, maximized the utilization of energy resource and significantly reduced the emission of carbon dioxide, other greenhouse gases and TSP. The implement of this project can save energy consumption 11,594 tons of standard coal each year and reduce carbon dioxide emissions by 59,308 tons. It made an important contribution to protect our air. 

Second Phase of Sewage station in FAW-Volkswagen Car Plant Foshan

The second phase of sewage station in FAW-Volkswagen Car Plant Foshan is used to treat industrial and sanitary sewage with a treatment capacity of 2,200 m3/d,  using aerobic MBR process, effluent water quality can reach “the reuse of urban recycling water – water quality standards for urban miscellaneous water consumption” GB/T18920-2002. The recycled water is reused for irrigation and toilet flushing. The annual amount of the recycled water is 200,000 tons. It has an advanced treatment capacity of 300,000 – 400,000 tons recycled water for cooling water circulation system. 

The equipment of the sewage station are mainly equipped with high efficiency motor, water pump are all with frequency control, the automation degree of the sewage station has reached above 90%. The latest flat membrane process has been implemented in the FAW-Volkswagen for the first time with the advantages of more than 2 times increased sludge load, not easy be polluted membrane and easy maintenance. The biological deodorization technology has been used for ensure the air quality around the sewage station area.

Recycling the Condensation Water of Industrial Steam for Washing Machine Instead of Reverse Osmosis (RO) Water in Volkswagen Automatic Transmission (Dalian) Co., Ltd.

In VWATD, the condensation water of industrial steam was filled into washing machine by adding pipes to connect the industrial steam system with RO water tank. The main impacts of the improvement are saving fresh water, reducing the working frequency of the RO water system pumps and reducing the discharge of domestic sewage.

In 2016, 4,800 tons RO water were saved by generating 400 tons condensation water per month through the improved process. Since the water producing rate of RO water system is around 60%, 8,000 tons of fresh water were saved. That saved 35,200 RMB in one year.

Other Projects

Volkswagen Group China is Pioneering the Future of Mobility

Volkswagen Group China has just established agreements of potential partnerships in new mobility services filed with five companies. It aims to set up a strong collaboration with Shouqi Group in the rapidly growing car-sharing business. With its longtime automotive partners in Shanghai and Changchun, it plans to tap into the fast-growing pre-owned car market and explore strategic cooperation with leading online pre-owned car market company Youxin. With Didi Chuxing, it plans to form a strategic partnership for high-quality, safe and efficient mobility services.

This year is the 25th anniversary of FAW-Volkswagen. 2016 marked the start of even more strategic undertakings. New operational bases have been established in the North and East of China, bringing FAW-Volkswagen’s nationwide strategy full circle. Regarding customer satisfaction, FAW-Volkswagen has continued to enhance quality awareness and improve localization and R&D capabilities, while the company’s newly released Sustainable Development Report underscores its commitment to being green, responsible and sustainable.

Faced with new situations and challenges in the market, FAW-Volkswagen is formulating its own ‘Strategy 2025’, as the company keeps abreast of new developments and changes within the industry. The company remains committed to sustainable, innovation-driven development, as well as to being a responsible corporate social citizen.

Volkswagen Group China Cultural Exchange Fund to Foster Exchange Between the Youth of Germany and China

The cultural exchange fund, with RMB 1 million endowment, is part of Volkswagen’s programs and activities during the 2016 Year of China-Germany Youth Exchange, inaugurated by Chinese President Xi Jinping and German Federal President Joachim Gauck in Beijing in March 2016. The fund targets young people up to 35 years of age, particularly young scientists, artists and journalists, and will increase socio-cultural exchange in education, culture, science, and media. 

The fund echoes the wider goals of Volkswagen’s Cultural Engagement Program called “PACE”, short for fostering Participation, Connection and Exchange. Under this umbrella, Volkswagen aims to create new opportunities for young people to participate in cultural and art programs; proactively connect people to new culture using social media and lighthouse programs; and promote active bilateral exchange between China and Germany, allowing the youth of both countries to develop deeper bilateral cooperation and gain broad experience and knowledge.

Youth Environment Ambassador Action & Education Program

Youth Environment Ambassador Action & Education Program (YEAAEP) makes up part of Volkswagen’s program under the 2016 Year of China-Germany Youth Exchange, inaugurated in March 2016 by Chinese President Xi Jinping and German Federal President Joachim Gauck in Beijing. 24 PASCH schools, supported by the Goethe-Institut in 14 cities across China, will take part in the 10-month program, which focuses on three areas: Forests, Climate and Resource Efficiency. Experts from environmental organizations, such as WWF and the Beijing Forestry University, have worked together with experts on German as a foreign language to compile a teaching manual for the program.

On completion of YEAAEP, all participating PASCH schools will be honored with an environmental protection award, with each student receiving a Young Environmental Ambassador certificate. This program will be rolled out further in future.

Stakeholder Dialog

Being aware of our internal and external stakeholders’ needs and expectations is a crucial precondition for business success. Volkswagen Group China seeks and maintains dialogues with our stakeholders. Our stakeholders include governmental organizations, public organizations, international organizations, non-governmental organizations, local communities, business partners, customers, suppliers, employees, analysts and investors – a network of relationships that grows with the market presence.

Awards

Personnel

  • Volkswagen Group China awarded “Top Employer” in 2016
  • SAIC VOLKSWAGEN awarded “Top Employer” in 2016
  • FAW-Volkswagen awarded “Top Employer” in 2016

CSR

  • Volkswagen Group China awarded “Best CSR Management 2016” by Southern Weekly
  • Volkswagen Group China awarded “Best Company for CSR 2016” by China Newsweek
  • Volkswagen Group China awarded “2016 China Excellent Contribution to CSR” by Sina Gongyi
  • Volkswagen Group China awarded “2016 China CSR Excellence Award” and “China Top 100 Corporate Citizen” by China Philanthropy Times
  • Volkswagen Group China awarded “2016 Best Corporate Citizen” by China Automotive News