Volkswagen plans South exports from China

Volkswagen has announced plans to export 300,000 cars annually from its Chinese manufacturing plants to countries in the South by 2030, according to a recent report. This strategy is part of the company’s broader effort to expand its global market presence and leverage advancements made in its Chinese operations.

Technologies developed in China

The German automaker stated that it has finalized crucial technologies developed through its research and development in China, which it intends to use for this export strategy. These include a cutting-edge electronic architecture, a platform, and a driving assistance system, developed in collaboration with Chinese companies XPeng and Horizon Robotics.

Export destinations and exclusions

Volkswagen indicated that it will export these "made in China" technologies to Asia, the Middle East, and South America, but "for now" not to Europe. Ralf Brandstätter, the group's general manager for China, emphasized that South America will be the first region where these technologies will be integrated into the local range.

Research and development center in Hefei

Volkswagen has created its largest research and development center outside Germany in Hefei, employing approximately 3,000 Chinese employees and 200 foreigners. This center is a key part of the company’s strategy to localize innovation and adapt to regional markets.

Job cuts and restructuring

The company has also announced significant job cuts, with an agreement in early September with unions providing for an additional 50,000 job cuts by 2030, bringing the total planned reduction in staff to about 100,000. These cuts are part of a broader restructuring effort to align with new production and technology strategies.

China's role in Volkswagen's innovation

Brandstätter stated that the technologies developed in China constitute a "strategic asset" and that China is "a motor of innovation for the entire group." This highlights the growing importance of China in Volkswagen's global operations and future direction.