Lending even more evidence to China’s growing importance for automakers, Volkswagen is planning to develop two new bespoke vehicles, one with each of its partners in the Middle Kingdom, Autonews said in a report today. Shanghai Volkswagen Automotive Co., which is a joint venture between China’s SAIC Motor Co. and Volkswagen AG, will produce a new luxury sedan, while VW’s second joint venture in the country with the China FAW Group Corp., FAW-Volkswagen Automotive Co., will develop a dedicated electric vehicle for the partnership’s newly launched Kali brand.
SAIC released a statement saying the car will be a compact premium sedan for the Chinese market and that it will be based on VW’s “most advanced platform and engine technology”, without getting into any further details.
Unlike VW’s partnership with FAW that builds Audi’s luxury models as well as a range of upscale Volkswagen vehicle’s such as the Golf, New Bora, Magotan, and Passat CC, SAIC’s joint venture with VW is limited to the latter’s Polo, Touran, Santana, Lavida, Passat and Tiguan, and certain Skoda models. With the new agreement, SAIC wants to extend its reach in the premium segment.
On the other hand, the China FAW Group Corp. wants to enter the growing electric vehicle market through its newly created Kali brand with a dedicated EV, details of which are to be released at a later date.
*Opening photo: China market VW Lavida
