(Yicai Global) Nov. 16 -- German carmaker Volkswagen is satisfied with its China partners and doesn't plan to up its stake in its local joint ventures, according to the head of its operation in the country.
VW's achievements in China have been made jointly with its partners FAW and SAIC, Jochem Heizmann, chief executive officer and president of Volkswagen Group China told Yicai Global in an exclusive interview at the Guangzhou International Automobile Exhibition.
Heizmann said he was very satisfied with the partnerships, indicating that the firm won't up its equity stakes like BMW plans to do with its respective China operations. VW's fellow German carmaker will take advantage of recent new policies to relax restrictions on foreign ownership of JVs in the country's auto industry.
The Chinese government's policies such as opening-up ensure companies' successful development in the future, he said, adding that BMW's plans show the Chinese government's positive attitude and VW is appreciative of such a policy.
The situation of VW in China is different from that of BMW, however, Heizman said. VW's performance in the country over the past 35 years has benefited from its two strong and successful partners.
The Chinese auto market faces challenges every month, Heizmann said, adding that the country's car market will not grow this year and could contract by 1 to 2 percent, according to the firm's analysis. VW has still achieved growth in China and the market still has growth potential in the medium-term, he said.
In plans set out ahead of the auto show in Guangzhou, VW and its partners will invest EUR4 billion (USD4.5 billion) to launch more than thirty pure electric vehicles in China within two years, of which 50 percent will be produced locally. It will also provide smart travel services to customers, VW announced in Guangzhou yesterday.
As a veteran carmaker, VW has decades of experience in research & development of car safety and comfort, which fully utilizes new technologies. It will introduce plug-in hybrid new energy vehicles in the future, and add new pure electric vehicles every year, Heizman said.
Heizman revealed that the new internet services developed by VW China's unit Mobility Asia will be used in cars made by its JVs, including FAW-Volkswagen Automobile, SAIC Volkswagen Automotive and Shanghai Volkswagen Automotive.