Volkswagen is making a radical change in its production and development strategy. The German automotive giant will no longer position China as just a major market; it will also position it as a global production and innovation base.

Volkswagen will make a change in strategy

The company’s new approach will be shaped by the “In China for the World” strategy. With this change, Volkswagen models manufactured in China will be developed not only for local consumers but also for customers around the world.

The “In China for China” approach adopted by the company in the past is coming to an end, and it is being replaced by a more ambitious and globally effective production model. Stoelzel announced that they are celebrating the 40th anniversary of the SAIC-Volkswagen partnership and that they will extend this cooperation until 2040. As part of the agreement, China’s production capacity and supply infrastructure will be combined with German engineering discipline.

Within the scope of the new model, not only the assembly process but also the design and R&D studies of the products will be carried out in China. According to Li Jun’s statement, the presence of reliable suppliers in the country will ensure that Chinese-made Volkswagen models are ahead of their competitors.

While vehicles produced here in the past were known for their simplified equipment levels, today this perception has completely changed. Volkswagen’s Passat Pro model produced in China is approximately 40% more affordable than its European counterpart and offers a richer equipment.

Volkswagen’s new move could change the balance of power in the global automotive sector. So what do you think about this? You can share your views with us in the comments section below.