FAW-Volkswagen


FAW-Volkswagen Automobile Co., Ltd. is a joint venture between FAW Group and Volkswagen Group which manufactures Audi and Volkswagen marque passenger cars for sale in China. Ownership of the company is: FAW – 51%, Volkswagen AG – 20%, Audi AG – 10%, and Volkswagen Invest – 19%. FAW-VW was founded on 6 February 1991.
FAW-VW is headquartered in the south-western fringes of Changchun, Jilin Province, where it also has two vehicle assembly plants. It has an additional assembly plant in Chengdu, Sichuan Province, and a fourth plant is under construction in Foshan, Guangdong Province. FAW-VW is capable of producing the cars based on the platforms of PQ34, PQ35 and PQ46.
FAW-VW's year-on-year production volume exceeded 513,000 units as of 31 July 2009. In 2011, FAW-VW sold just over 1,000,000 automobiles.

History

1990s

On November 20, 1990, the official contract of an annual capacity of 150,000 cars for the joint venture between FAW Group and Volkswagen AG was signed by Geng Zhaojie, President of FAW and Dr. Carl Hahn, CEO of Volkswagen AG in the Great Hall of the People, Beijing. All of the facilities in the first car plant, including the body shop, paint shop and assembly shop came together from the abandoned factory of VW's in Westmoreland, USA. The company started its business officially on September 1, 1992.
On December 5, 1991, the first Volkswagen Jetta Mk2 rolled off the line. Two years later, on February 7, 1993, the 10,000th car rolled off the line.
In 1995 FAW Group, Volkswagen AG and Audi AG decided to integrate Audi to the product line of the joint ventures, the equity holdings were also changed with 60% for FAW, 30% for VW and 10% Audi.
On May 20, 1996, the first Audi 200 rolled off the line.
On July 10, 1996, the engine shop started running as well as full scale production.
By July 1996, the company was capable of producing 150,000 cars, 270,000 engines and 180,000 gearboxes in one year.
In 1997 FAW-Volkswagen Sales Company Ltd. was established as a joint venture between FAW-VW and FAW Group with the equity holdings of 50% for each, it was a smart idea of avoiding the Germans to take control of the sales department under the policy of the governing body then. By 2002 FAW-VW took the majority of the equities back from FAW Group.
In 1998 the Jetta King became the first car ever equipped with ABS system in the Chinese A-class market.
In 1999 the Jetta was registered in FIA Group N category, it entered a lot of Rally events in China with FRD Sport and Qingyang Racing from the late 1990s to early 2000s.

2000s

In 2002 the Jetta became the first mass production passenger car in China to be available with a diesel engine.
On January 7, 2004, the 1,000,000 car rolled off the line.
On December 7, 2004, FAW-VW's second car plant began operating.
On August 4, 2009, the 3,000,000th car rolled off the line in car plant #2.

2010s

By 2010 FAW-VW had sold over 1,000,000 Audis in China. With the celebration, a sculpture named 'Ode to Audi' from Gerry Judah was set at the entrance of the company.
According to Chinese government policy, foreign auto manufactures should develop domestic brands with their local partners. Thus FAW-VW revealed its own brand 'Kaili ' in May 2011.
On August 15, 2011, FAW-VW celebrated its twentieth anniversary with its one millionth car in 2011.
November 2016: Changchun FAW-VW agency workers organize and file a report on unfair labor conditions to the All-China Federation of Trade Unions
December 2016-January 2017: With the intervention of Changchun ACFTU, worker representatives engage in two collective bargaining sessions with FAW-VW and Hongxin Youye. The two CB sessions don’t seem to have yielded any outcomes.
January–February 2017: Over one thousand FAW-VW agency workers present their case to the district’s labor arbitration committee, they get no official reply
February 2017: Agency workers present their cases to court, which rejects their claims. 500 plus agency workers hold a protest in front of the local Ministry of Human Resources and Social Security office.
April 2017: Agency workers organize a May Day protest, but they cancel their plans under police pressure
May 21, 2017: Agency workers gather at the gates of the company and chant slogans during the Changchun International Marathon
May 26, 2017: Worker representatives Fu Tianbo, Wang Shuai and Ai Zhenyu are detained for “gathering crowds to disrupt public order”. Not long after, Wang and Ai are released, Fu remains in detention.
June 7, 2017: Worker representative Fu Tianbo is officially put under arrest
July 2017: Police harassment of Fu Tianbo’s family increases, Fu’s mother publishes video demanding to see her son, otherwise she will go to Beijing to present her grievances to higher government officials.
July 19, 2017: The three arrested workers sent a letter to Volkswagen, its World Works Council and its European Works Council
August 2, 2017: Officers of IG Metal send a letter to VW China demanding an end to the judicial persecution of the three arrested workers.
On March 26, 2019, FAW-VW launched new Jetta sub-brand, with three new vehicles: Jetta VA3, VS5 and VS7. While VA3 is rebadge of VW Jetta in China, both SUV models, VS5 and VS7, are rebadge of SEAT models. The sales is scheduled to start in the third quarter of this year. All Jetta models are assembled at the Chengdu plant.

Leadership

production started in December 1991, and the current manufactured range includes:

Current products (Audi; Changchun plant)

Current products (Audi; Foshan plant)

Current products (Volkswagen; Changchun plant)

Current products (Jetta marque; all cars are assembled at the Chengdu plant)

Current products (Volkswagen; Chengdu plant)

Current products (Volkswagen; Foshan plant)

Current products (Volkswagen; Qingdao plant)

Former products (Audi)

Former products (Volkswagen)

Current powertrain range

The following figures including VWs and Audis made by FAW-VW:
Year1991199219931994199519961997199819992000200120022003
Annual Sales–7,61712,5007,17918,64925,44138,58662,45278,755111,049130,761207,858298,006
Year20042005200620072008200920102011-----
Annual Sales300,118277,527351,347455,654490,965682,374858,6971,018,888-----