BIZCHINA> 30 Years of Reforms
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BIZCHINA> 30 Years of Reforms
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Driving force
By Li Fangfang (China Daily)
Updated: 2008-08-12 09:10 SVW's drive to get parts made in China also began to clear the way for the entire Chinese auto industry. They stuck by the principle of the "China Brand" and "no substitutions", and established an institution that regularly met to localize Santana and the domestic supplies rate eventually rose from 2.7 percent to its current 98.9 percent. Now SVW has built the auto parts support network in China. There are now 400 members throughout 20 provinces and cities in the country. SVW is not the only winner, its actions also established the base of China car parts industry. New model to go further In April 2002, the shareholders of SVW signed an agreement to extend the contract for another 20 years till 2030. In 2003, the company celebrated its 2 millionth car driving off the assembly line. On July 5, 2005, the 3 millionth SVW-made car rolled off the line, making SVW the first carmaker in China to realize a total output of 3 million cars. Last year, it sold 436,300 passenger vehicles, taking third place in the sector, while in 2007, the auto production and sales in China arrived at 8.88 million and 8.79 million respectively, making it the world's second biggest auto market only behind the US. Among the 4.7 million sedans, more than 80 percent were purchased by private owners. The younger generation became the main power of the private sedans. To maintain its leadership in the Chinese market at this year's Beijing Auto Show in May, SVW debuted its first Volkswagen-branded vehicle co-designed by German and Chinese, made in China and tailored for China's market - Lavida, which means life and hope in Spanish, also realizes the joint venture's hope to further strengthen its foothold in China's fiercely competitive auto market. As a car with more than 80 percent Chinese content, Lavida will boost SVW's own development capability instead of relying on existing foreign designs.
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