Volkswagen Plans to Increase Stake in the Joint Venture with China’s FAW Group image

Volkswagen plans to raise the stake in the JV with the Chinese FAW Group, according to VW CEO Martin Winterkorn.

“Volkswagen and FAW want to extend their partnership. We are examining right now various possibilities on how we can expand our cooperation,” Winterkorn said in an interview with Frankfurter Allgemeine Sonntagszeitung.

Winterkorn said that the automaker’s plans is to increase the stake in the JV with FAW from the current 40% to 50% and that talks regarding this strategy have already begun. The JV with FAW expires in 2016 and it currently manufactures Audi and VW vehicles. The German automaker also has a joint venture with the Chinese SAIC Motor Corp.

At the end of last month VW officials inaugurated the new engine plant located in Changchun, China. The Volkswagen FAW Engine Plant will manufacture the latest generation of EA888 engines, which will be used for the automaker’s vehicles in China.

The FAW-VW joint venture manufactures Audi vehicles and VW passenger cars for the Chinese market. The models currently manufactured in Changchun are the VW Golf, New Bora, Jetta, Magotan CC, Magotan, Sagitar, as well as Audi A4, A6, Q3 and Q5. In June 2012 the joint venture celebrated the six millionth vehicle manufactured here.

Source: Reuters