TimelineofthecooperationbetweenWandChinaThe VolkswagenGroupisoneofthefirstandmostsuccessfulinternational partners inChina'sautomobileindustry,growingwithitforaboutfourdecades.Thesuccessstorybeganin1978whentheVolkswagenGroupfirstbegantocommunicatewithitsChinesecounterparts.In1984,SAiCVolkswagenCorporationLtd.,VolkswagenGroup'sfirstjointventureinChina,wasfoundedinShanghai,followedbyFAW-VolkswagenCorporationLtd.in1991.ThefirstassemblylineoftheSantanastartedinOctober1985.InSeptember1986,the10,000thSantanawasbuiltinChina.By1993SAiCVolkswagen'soutputhadreached100,000vehiclesVolkswagenalsoencouraged itsforeignpartssupplierstocreatejointventuresinChina,andtheirresultingproducthelpedSAiCVolkswagenachievean 85percent local contentrateby1993.(Thequotaofmade-in-Chinapartswasbelowsixpercentin1986.)In1995,thelocalcontentquotastoodat89percent
Timeline of the cooperation between VW and China The Volkswagen Group is one of the first and most successful international partners in China’s automobile industry, growing with it for about four decades. The success story began in 1978 when the Volkswagen Group first began to communicate with its Chinese counterparts. In 1984, SAIC Volkswagen Corporation Ltd., Volkswagen Group’s first joint venture in China, was founded in Shanghai, followed by FAW-Volkswagen Corporation Ltd. in 1991. The first assembly line of the Santana started in October 1985. In September 1986, the 10,000th Santana was built in China. By 1993 SAIC Volkswagen’s output had reached 100,000 vehicles. Volkswagen also encouraged its foreign parts suppliers to create joint ventures in China, and their resulting product helped SAIC Volkswagen achieve an 85 per cent local content rate by 1993.(The quota of made-in-China parts was below six percent in 1986. ) In 1995, the local content quota stood at 89 percent
Santane 3000
In2017,theGrouplaunchedVolkswagen(Anhui)AutomotiveCompanyLimitedwithamissiontomanufactureNEVsinChinaforChina.In2021,theAudiFAWNEVCompanywasincorporated,focusingonthemanufactureofluxuryNEVs inChina.SinceenteringtheChinesemarket,theVolkswagenGrouphastakentheleadingmarketposition,andwith its joint venturepartners,it delivered 3.18millionvehicles inChineseMainlandandHongKongin2022.Asoftheendof2022,VolkswagenGroupChinahasover90,000employeesinChina,includingthoseinitsjointventures.By2030,theGroupalsoexpectstogrowtheproportionofNEVs in itsChinafleettomorethan40%.By2o5o,theVolkswagenGroupaimstobefullynetcarbonneutralglobally.VolkswagenGroup Chinaisup to thetask withits goTOzero initiative
In 2017, the Group launched Volkswagen (Anhui) Automotive Company Limited with a mission to manufacture NEVs in China for China. In 2021, the Audi FAW NEV Company was incorporated, focusing on the manufacture of luxury NEVs in China. Since entering the Chinese market, the Volkswagen Group has taken the leading market position, and with its joint venture partners, it delivered 3.18 million vehicles in Chinese Mainland and Hong Kong in 2022. As of the end of 2022, Volkswagen Group China has over 90,000 employees in China, including those in its joint ventures. By 2030, the Group also expects to grow the proportion of NEVs in its China fleet to more than 40%. By 2050, the Volkswagen Group aims to be fully net carbon neutral globally. Volkswagen Group China is up to the task with its goTOzero initiative
VOLKSWAGENGROUP CHINA8AudiVolkswagenSEATSKODABUGATTIPORSCHEBENTLEYOMANSCANIACommercialVehicles
ChineseForeign Contractual Joint Ventures-CJV中外合作企业CJV(Contractual JointVentures)ItisaveryflexibleFiEformwhereChineseandforeignventureshavemorecontractualfreedomtostructurethecooperation.TheChineseandforeignventuresmaydistributeprofitsandlossesinaccordancewithspecificprovisionsintheCJVcontract,notnecessarilyin proportiontotheirrespectiveequityinterestsintheCJVItmaybeorganizedastheLLc.insuchcasetheforeignventures mustcontributemorethan25percenttotheregisteredcapitaloftheCJVRelatedlaws(repealedbythenewFILin2020):LawofthePeople'sRepublicofChinaonChinese-ForeignContractualJointVentures(CJV)DetailedRulesforLawofthePeople'sRepublicofChinaonChinese-ForeignContractualJointVentures
Chinese Foreign Contractual Joint Ventures –CJV 中外合作企业 CJV(Contractual Joint Ventures ) ◦ It is a very flexible FIE form where Chinese and foreign ventures have more contractual freedom to structure the cooperation. The Chinese and foreign ventures may distribute profits and losses in accordance with specific provisions in the CJV contract, not necessarily in proportion to their respective equity interests in the CJV. It may be organized as the LLC. In such case the foreign ventures must contribute more than 25 percent to the registered capital of the CJV. Related laws (repealed by the new FIL in 2020): ◦ Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures (CJV) ◦ Detailed Rules for Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures