VW Global's Board of Directors Holds 9 Brands Together for the First Time in China

Yesterday, the German Volkswagen Group's global board of directors was held in Chengdu. This is the first time that Volkswagen has set up its global board of directors in China. In addition to the board of directors, the purpose of this trip was also to include acceptance of the FAW-Volkswagen Chengdu branch project and the Chengdu-made "New Saxon" (NCS) production line and products.

On August 24th, Wendeng, chairman of the German Volkswagen Group, led its main board members to fly to Chengdu by special plane. These members involved all the important business sections of the public, such as production, sales, and research and development. Volkswagen's nine well-known brands such as Audi, Porsche, Bentley and other automobile company heads also arrived in Chengdu.

Two years ago, FAW-Volkswagen Chengdu Branch launched the "New Sagitar" (NCS) project in the Chengdu Economic Development Zone. This is the second Volkswagen model produced locally by Jetta after Chengdu. This time, Volkswagen Group executives will accept NCS production lines and products. It is reported that after acceptance, "NCC Chengdu" NCS output will reach 3,000 units this year and 150,000 units next year. In 2013, FAW-Volkswagen Chengdu Branch will have the capacity to produce 350,000 cars per year.

In addition, the board of directors of the German Volkswagen Group will also take the opportunity to further communicate with the main leaders of Sichuan and Chengdu in order to develop a deeper level of strategic cooperation. It is understood that Volkswagen has been hoping to take advantage of a new round of western development opportunities to expand production capacity.

In fact, Chengdu has become one of the major production bases for the general public in China. In 2007, FAW Jetta was introduced into Chengdu; in May 2009, the FAW-Volkswagen Chengdu sedan project was started in Chengdu Economic Development Zone; on July 16 this year, FAW-Volkswagen Chengdu Branch Phase III expansion project and EA211 engine project started. 2013 is expected to start. After the completion of the expansion project in March of this year, Chengdu FAW-Volkswagen's vehicle production capacity will reach 450,000 vehicles. The product categories include the new Jetta, the new Sagitar (NCS) and other new models. The EA211 engine project will also enable Volkswagen to form a "core" full industrial chain layout in Chengdu.

Yesterday, Volkswagen announced global sales in July and the first half of this year. In July this year, Volkswagen's global sales volume was 665,600 units (excluding the Scania brand), an increase of 16.3% over the 572,200 units sold in the same period last year. In the first seven months of this year, Volkswagen’s global sales totaled 4.75 million units, a year-on-year increase of 14.4%.

Look at the regional markets. In the first seven months of sales, Europe occupied 2.2 million vehicles, which represents a year-on-year increase of 10.2% from the 1.99 million vehicles sold in the previous year. The North American market, including the United States, has also seen rapid growth, growing 21.4% from the 309,200 units in the same period last year to 375,500. In the Asia-Pacific region, 1.46 million vehicles, representing a year-on-year increase of 19.2% over 1.23 million vehicles.

It is worth mentioning that VW's growth in the world's largest auto market, the Chinese market, lags behind the average level in the Asia-Pacific region, from 1.11 million vehicles last year to 1.29 million units, an increase of 16.4%. In contrast, Volkswagen has made a significant breakthrough in the long-term lukewarm Indian market, with 21,300 vehicles surging 194.5% to 62,800.

According to the brand division, Volkswagen’s brands dominated, with the total sales of 2.95 million units in the first seven months of the year increased by 12.5% ​​year-on-year. Audi exceeded the 646,300 vehicles last year and achieved an increase of 17.4% from the number of 758,900. The Skoda brand sold 532,200 vehicles, an increase of 19.7%. Seat has contributed 215.5 thousand vehicles in the first 7 months, but the increase is only 1.9%. The total sales volume of commercial vehicles for the general public was 303,100, an increase of 28.2% over the 236,400 vehicles sold in the same period last year.