Volkswagen AG and DaimlerAG signed accords on Friday to increase production capacity in China and introduce far more green technologies to their Chinese ventures, as China’s President Xi Jinping came to Berlin calling for a “quantum leap” in financial ties between the 2 countries.
Xi was accompanied by prime executives of massive Chinese organizations who signed agreements with German executives in a ceremony attended by Chancellor Angela Merkel. Germany is China’s foremost trading partner in Europe, and Volkswagen established a single of the earliest and largest joint vehicle-making ventures with a Chinese firm.
Jochem Heizmann, the VW management board member responsible for China, signed an agreement to cooperate a lot more on advanced technologies with both of VW’s partners, Shanghai-primarily based SAIC Motor Co. and First Automotive Functions Group. The 2 ventures will produce eco-friendly versions, and extra production capability will be established inside the FAW venture.
These projects fall underneath VW’s program to invest €18.2 billion, along with its venture partners, in factories and designs amongst 2014 and 2018. VW says that would be the biggest ever investment program in China’s automotive sector. Volkswagen produced and offered much more than 3 million cars in China last 12 months and aims to boost that to 4 million by 2018, when it aspires to be the global market leader. Xi plans to check out VW’s headquarters in nearby Wolfsburg on Saturday.
Bayerische Motoren Werke AG said it will deepen its cooperation with Brilliance China Automotive Holdings Ltd., its partner. Meanwhile, Daimler is earmarking €1 billion out of a €4 billion investment system to increase automobile- and engine-production capacity at its venture with Beijing Automotive Sector Corp., which generates the C-Class and E-Class automobiles, and the GLK. Production of the compact GLA is set to start subsequent year
Intellectual property theft and other hazards of performing enterprise in China pale in comparison with the size and wealthy combine of its auto market. ”We want to participate in this growth,” explained Daimler CEO Dieter Zetsche.