Volkswagen ramps up manufacturing in China

Volkswagen is rapidly expanding its footprint in China as it looks to introduce Chinese-built models to more markets – and they could come to Australia.

According to Reuters, a Volkswagen Group executive said the brand is looking to expand its global footprint and offer Chinese-made VWs to more markets.

The first region is the Middle East, which received its first batch of Chinese exports in recent months, with Southeast and Central Asian countries next on the list of export destinations said VW Group China’s chief technology officer Thomas Ulbrich.

“This is what we are doing in a collaborative decision-making process with our headquarters in Germany, because we have to pay attention that we have the right portfolio of cars in each market,” said Ulbrich.

However, Europe is not considered a potential market due to differences in electronic architecture and software for smart vehicles.

Just this week, Volkswagen Group announced new facilities in China, with the expansion of its technology centre in Hefei.

The result? A claimed 30 per cent acceleration in the rollout of its China Electronic Architecture (CEA), vehicle technology and advanced driver aid (ADAS) development.

It also claims the cost of developing a new model will be slashed by 50 per cent, which could result in more affordable cars wearing a Volkswagen badge.

Volkswagen’s Chinese manufacturing facilities can build both electrified and combustion-powered vehicles, although they are primarily dedicated to electric, intelligent, and connected models.

The site is also said to be VW’s most comprehensive R&D hub outside its home market.

In a media release, chairman and CEO of Volkswagen Group China Ralf Brandstatter described China as the world’s most competitive automotive market.

“Our customers here expect rapid innovation and flawless quality,” Brandstatter said.

“This is why we are taking our development capabilities in China for China to the next level.

“By expanding our footprint in Hefei, we are strengthening our ability to respond quickly to local needs and to shape technologies directly where they will be used.”

Volkswagen Australia has not yet confirmed whether it has plans to launch Chinese-built models in Australia, but we’ve reached out to the company for comment.

Either way, the German brand wouldn’t be the first to offer Chinese-built cars in Oz, with many legacy OEMs turning to China’s cheaper and faster manufacturing, including Mazda, Nissan, Toyota, and BMW.

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au