FAW-Volkswagen Automotive Co., a 60-40 joint venture between Volkswagen AG and China’s FAW Group Corp., will build an electric vehicle for the partnership’s newly created brand. The EV will be the first vehicle launched for Kaili, the joint venture’s new brand, according to the production plan submitted to China’s Ministry of Industry and Information Technology. Further details about the EV have yet to be disclosed but we think it might be the the VW UP! pictured below.
Meanwhile, Shanghai Volkswagen Automotive Co., a joint venture between SAIC Motor Co. and Volkswagen AG, have indicated plans to develop a luxury sedan for the Chinese market. The plan was endorsed by both SAIC and VW during SAIC Chairman Hu Maoyuan’s visit in mid-April to VW’s Wolfsburg headquarters, SAIC said in a statement. The car will be a compact premium sedan targeting the Chinese market and it will be developed on VW’s “most advanced platform and engine technology,” SAIC said. Additional details about the car have yet to be disclosed.
Aside from Shanghai Volkswagen, VW also has a joint venture with China FAW Group Corp., which is known as FAW-Volkswagen Automotive Co. Shanghai Volkswagen currently builds the VW Polo, Touran, Santana, Lavida, Passat and Tiguan. FAW-Volkswagen produces the Golf, Jetta, Sagitar (Picture above), New Bora, Magotan and CC models. FAW also builds Volkswagen’s Audi luxury sedans. SAIC has long hoped that Shanghai Volkswagen could produce a luxury model similar to the Audi model lineup. In the first three months of 2011, Shanghai Volkswagen sold 227,835 vehicles. Meanwhile, FAW Volkswagen 225,256 units including 42,667 Audi models. While it sells about the same number of vehicles as FAW Volkswagen, Shanghai Volkswagen is less profitable than FAW Volkswagen because of its lack of a luxury brand.
