The Sino-German joint venture, FAW-Volkswagen in Changchun, China, is celebrating its tenth anniversary. The celebrations were attended by members of the boards of Volkswagen AG, Audi AG and the Volkswagen brand, headed by Dr Ferdinand Piëch, chairman of the board of Volkswagen AG, and by high-ranking politicians and industry representatives of the People's Republic of China.

In his address, Dr Piëch praised the excellent results achieved by the joint venture in Changchun. Sales volume has tripled in the period 1997 to 2000; turnover has increased four-fold. "FAW-Volkswagen is now a high-yield, healthy company in China's automobile industry. The positive development can be largely attributed to the excellent cooperation experienced with our joint venture partner, First Automotive Works (FAW), and to the introduction of advanced technology and products", said the chairman of the board.

Piëch continued that the start of production of the Volkswagen Bora was taking the joint venture a step towards the future. "The introduction of modern Group products is a crucial core element of our successful strategy for China."

In 1991 FAW-Volkswagen commenced operations, and in the same year the first Volkswagen Jetta was produced. Both partners have intensified cooperation in the intervening period. In 1996 a joint component manufacturing and assembly facility was added to the gearbox and engine plant. Since the Autumn of 1999, the joint venture, in which Volkswagen AG has a 30 per cent interest and Audi AG 10 per cent, has been building the new Audi A6 which has been adapted specifically for China.

Today FAW-Volkswagen employs some 5,800 staff. In 2000, the joint venture delivered a total of 111,000 passenger cars (VW Jetta and Audi A6) to customers and thus increased its year-earlier volume by 34 per cent. In the first six months of this year, sales rose by a further 27 per cent to 64,800 (1-6/00: 51,200) units.

Over two million passenger vehicles have been produced by the VW joint ventures Shanghai Volkswagen and FAW-Volkswagen. Last year a total of 336,000 (1999: 315,000) VW and Audi vehicles were sold on the Chinese market. With over 50 per cent market share, Volkswagen is the market leader in China. The first half of 2001 saw a rise to 177,132 (1-6/00: 149,347) vehicles, an increase of 18.6 per cent.