The Volkswagen Group announced during the 2023 Shanghai Motor Show, which is currently being held in the eastern city of Shanghai, that it will invest about one billion euros (about $ 1.1 billion) in building a new center for development, innovation and purchasing in China.
The new center, with the project name “100%TechCo”, will be built in Hefei, capital of east China’s Anhui Province.
The company said that the center will bring together vehicle and spare parts research and development teams on the one hand and procurement teams on the other, with the aim of benefiting from synergies in the development process and integrating the latest local technologies into product development at an early stage.
The center is expected to be launched in early 2024 and will have more than 2,000 employees in procurement, research and development. It is expected that the development time of new products and technologies will be gradually shortened by about 30%.
“By continuously pooling development and procurement capabilities, and integrating local suppliers at an early stage, we will greatly accelerate our development pace. This will also enhance the cooperation efficiency of our joint venture and increase our profitability,” said Ralf Brandstetter, Chairman and CEO of Volkswagen Group China.
He added that building a “100%TechCo” is an important step in the company’s strategy of “In China, for China.”
Headquartered in Hefei, Anhui Volkswagen is the first joint venture of the Volkswagen Group in China focusing on new energy vehicle research, development and manufacturing.