Company contributes to Chinese auto industry

Since the coming of the new century, instead of resting on the laurels of past successes, the Volkswagen Automotive Group, adjusted its strategy with a view to improve research and development, expand the models and variety of automobiles and enlarge its investment in China.
Volkswagen Group is the largest, earliest and most successful foreign partner of China's automobile industry.
Volkswagen established ties with China as early as 1978 and achieved remarkable progress in co-operation with Chinese peers.
The relationship sets the benchmark for economic and technology co-operation between China and Germany.
Shanghai Volkswagen - the first joint venture of its parent company - was founded in October 1984. It is a 50-50 joint stake with Shanghai Automobile Inc as the Chinese partner. In the past 20 years, Shanghai Volkswagen launched Santana, Santana 2000, Passat, POLO and GOL and became the largest car manufacturer on the Chinese mainland.
Volkswagen's second joint venture on the mainland - the Changchun-based FAW (First Automotive Works) Volkswagen was founded in February 1991. Volkswagen held 40 per cent of its shares and FAW held the remaining 60 per cent. FAW Volkswagen produced Jetta, Audi, Bora and Golf and became China's second largest car producer.
In January 2003, Volkswagen, FAW Group and Shanghai Automobile Group jointly founded Volkswagen Transmission (Shanghai) Co Ltd, which will be devoted to the production of first-rate transmissions.
Shanghai Volkswagen and FAW-Volkswagen have sold over 3.3 million cars so far and contributed heavily to China's automobile industry. In 2002, the first year after China's WTO entry, the two Volkswagen joint ventures sold 512,000 cars, an increase of 42.8 per cent over the same period in the previous year. Both figures set new records.
The two companies are the undisputed leaders in terms of car output and sales. Meanwhile, Shanghai Volkswagen and FAW-Volkswagen have inked their names in China's Top 500 Foreign-Funded Companies and Top 10 Foreign-Funded Companies Bulletin for years, reaping both social and economic profits. The success of Shanghai Volkswagen and FAW-Volkswagen has provided experience and a model for the domestic automobile industry to attract foreign funds.
Thanks to generous support from the Chinese Government and sincere co-operation between Chinese and German partners, the two joint ventures are set to reach higher levels of progress and raise the standard of the entire automobile industry in China.
After launching such leading products as Audi A6, Passat, Bora and POLO; Shanghai Volkswagen and FAW Volkswagen unveiled four new models in 2003, including GOL, the first double-door compact car in China, the cutting-edge three-wagon POLO, medium-end sedan Audi A4 and the world's classic Golf. Touran, Volkswagen's latest product, is soon to be produced on the mainland.
During the 20 years of co-operation with Chinese partners, Volkswagen learnt to look at things on the long term.
It focused on introducing advanced technologies and products while training local technological and management professionals, while carrying out its localization strategy and support the development of China's own automobile parts industry.
Volkswagen's China strategy will focus on beefing up co-operation with Chinese partners, seizing opportunities to sharpen the competitive edge of its automobile plant on the mainland and produce and sell over 1 million cars in China by 2007. China will be the pillar and export base of Volkswagen in the Asia-Pacific region in the future.
To achieve the goals, Volkswagen will spare no effort to reduce costs, improve technology and product quality, procurement, marketing and after-sale service and train more technicians and managers in China.
Volkswagen always devotes its support to the culture, education and public welfare in China.
It offered generous support and donations to the "Project Hope," flood control and damage repair, forestation along the Great Wall, the Beijing International Music Festival, Beijing Zoo Panda Research Centre, Volkswagen Tongji Automobile Research Institute and China Science and Technology Museum, and founded the Volkswagen Music Fund to promote the music industry in China.
During the struggle against SARS in spring, Volkswagen Group donated 1 million yuan (US$120,000) to the Beijing municipal government through the Ministry of Health and a Passat ambulance to Beijing Hospital, a sign of its responsibility and resolution to fight the disease side by side with the Chinese.
According to Volkswagen's latest plan in 2003, it will invest up to 6 billion euros (US$7 billion) in China in the next five years and lift its output on the mainland from the current 0.8 million to 1.6 million.
Volkswagen is well-prepared for opportunities and challenges after China's WTO entry, and is determined to team up with Chinese partners to face the challenge and keep its promise to China: Volkswagen was, is, and will always be a loyal friend of the Chinese.