Volkswagen strengthens component production in China

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Wolfsburg / Dalian, 11 May 2010 - Volkswagen Automatic Transmission Co. Ltd. in China begins local production of the efficient dual clutch transmission (DSG) today (Tuesday), marking a further milestone for Volkswagen Group China on the road to becoming the ecological leader among automakers in China.


Dr. Winfried Vahland, President and CEO of Volkswagen Group China, stated: “The start of DSG production in China is another important step for Volkswagen Group China. We can progress towards our goal of further extending our market share while at the same time achieving a greater reduction in the fuel consumption and emissions of our vehicles by fostering progressive powertrain technologies.”


In 2007, Volkswagen Group China set itself the ambitious goal of achieving a 20 percent reduction in fuel consumption and emissions for the locally-produced vehicle fleet by 2010. In this context, Volkswagen Group China launched the efficient TSI engines in China in 2007, and gradually began domestic component production at its sites in the country. The locally-produced DSG transmissions will be installed in vehicles for the Chinese market. There is great demand from Chinese customers for the dynamic, fuel-efficient and low-emission TSI engines and DSG transmissions. “For Volkswagen, TSI and DSG are key technologies for becoming the most environmentally-friendly automaker in China,” Vahland commented.


In the first phase, the newly-founded Volkswagen Automatic Transmission Co, Ltd. in Dalian will produce 300,000 units of the 7-speed DSG transmission per year, and capacity will then gradually be expanded to a maximum of 600,000 units. A total of €400 million (4 billion RMB) is being invested in expanding component production capacity at the Dalian plant. This sum is part of the €6 billion investment package to expand production capacity and develop new vehicles in China for the period to 2012.


Apart from Volkswagen Kassel, the lead plant for transmission production in Europe, the Dalian facility is the second plant worldwide to build DSG transmissions. Production in Dalian has been set up with on-site support from teams of experts from Kassel. In addition, Chinese employees received training in Kassel to prepare for their upcoming tasks.


Only a few weeks ago, Volkswagen Group China announced its e-mobility strategy for the Chinese market. Production of electric vehicles in China is scheduled to begin in 2013. The goal is to make Volkswagen Group China the market leader for forward-looking powertrain technologies.



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