SAIC Volkswagen. SAIC Volkswagen Automotive Co., Ltd., formerly known as Shanghai Volkswagen Automotive Co., Ltd. is an automobile manufacturing company headquartered in Anting, Shanghai, China and a joint venture between SAIC Motor and Volkswagen Group. It was founded in 1984 and produces cars under the Volkswagen, Škoda and Audi marques. It is the second automobile manufacturing joint venture in China after American Motors and the first German car manufacturer to enter China.

The joint venture is made up of equity from SAIC Motor (50%), Volkswagen AG (40%), Volkswagen (China) Invest (10%), with a fixed-term venture for 45 years up until 2030. It is the first of three joint ventures operated by Volkswagen in China, alongside FAW-Volkswagen with FAW Group and Volkswagen Anhui with JAC Group.

History
The joint venture was formed in October 1984, as Shanghai Volkswagen. This was a 25-year contract to make passenger cars in Shanghai with a limit of 50 percent foreign ownership. Shanghai Volkswagen began automobile production in 1985. As car imports fell to some 34,000 in 1990, SAIC Volkswagen's production of its Santana models reached nearly 19,000 vehicles that year. By 1993 SAIC Volkswagen's output had reached 100,000 vehicles.

Volkswagen was aided by some Shanghai municipal efforts. Various restrictions on engine size, as well as incentives to city taxi companies, helped ensure a safe market in the company's relatively wealthy home arena. The Shanghai plant was by far the winner among all new JVs, as it produced cars that could function as taxis, vehicles for government officials and transport for the newly emerging business elite. 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. In May 2018, SAIC Volkswagen started to export the Santana, Lavida, Lamando, and Tiguan to the Philippines as part of the new ASEAN-China Free Trade Agreement (ACFTA). The joint venture was also in the process of building an electric-car plant in Anting, near Shanghai by late 2018; it was expected to make 300,000 e-vehicles per year, starting in 2020.<ref2">https://global.handelsblatt.com/companies/vw-revamps-production-electric-age-981646 </ref>

On 12 April 2002, SAIC Motor renewed its contract with Volkswagen and extended the term of cooperation for another 20 years. Chinese Communist Party former general secretary Jiang Zemin attended the signature ceremony. Shanghai Volkswagen Sales Co. Ltd, established on 19 October 2000, as the first joint venture in vehicle sales in China.

On 11 April 2005, the Czech automotive brand Škoda Auto was introduced after signing a contract. The first model for the brand was the Škoda Octavia built by Shanghai Volkswagen and commenced production on June 6, 2007. This followed with the Škoda Fabia in December 2008, the Superb in August 2009, the Škoda Rapid in April 2013 and the long wheelbase Škoda Yeti seven months later.

To complete the model lineup for the Chinese market, the Škoda Kodiaq was officially listed in March 2017, followed by the Škoda Karoq in January 2018 and the Chinese built Škoda Kamiq six months later.

SAIC Volkswagen started vehicle export shipments in January 2018 which targets left-hand drive Southeast Asian markets. Prior to this, the company briefly exported several hundred Volkswagen Polo Sedan to Australia in 2004.

Facilities

Current products

Audi

Škoda

Volkswagen

Former products

Volkswagen

Škoda

Sales

See also 

 FAW-Volkswagen
 Volkswagen Group China
 SAIC Motor
 SAIC-GM

References

External links
 

Car manufacturers of China
Volkswagen
Volkswagen Group
Vehicle manufacturing companies established in 1984
Chinese companies established in 1984
Chinese-foreign joint-venture companies
1984 in Shanghai