Volkswagen Extends Joint Venture With SAIC

The Volkswagen Group extends its joint venture agreement with Chinese state-owned automaker Shanghai Automotive Industry Corp. (SAIC) through to 2040 as part of a consolidation of its Chinese operations.

The existing JV agreement, which was set to expire in 2030, has been extended ahead of schedule to allow for more long-term planning of product investments and market strategies, says the German automaker.

Volkswagen confirms that under the new agreement, the SAIC-VW JV will accelerate its product offensive. By 2030, SAIC Volkswagen plans to launch 18 new models, with 15 of these being developed specifically for the Chinese market. This includes eight all-electric models, VW says.

Volkswagen says two of these new electric vehicles will be based on its locally developed "Compact Main Platform" and introduced by 2026.

In addition to the EV focus, VW confirms the planned launch of three new plug-in hybrids and, for the first time, two range-extender models by 2026.

The decision to introduce range-extender vehicles to the VW lineup comes as sales of such models in China continue to rise.

“Together, we established one of the first international joint ventures in the region 40 years ago. With this long-term contract extension, we underline the importance of this collaboration and the significance of the Chinese market for the Volkswagen Group,” says Ralf Brandstätter, CEO of Volkswagen Group China.

The Volkswagen Group also reveals that it will reorganize SAIC Volkswagen’s production network to improve efficiency and reduce costs, with a gradual shift from internal-combustion-engine production to EV manufacturing. The company is pushing for a 25% reduction in CO2 emissions by 2030 as part of its broader decarbonization efforts aimed at achieving carbon neutrality by 2050.The extension to the existing agreement continues the partnership between VW and SAIC founded in 1984. Over the past 40 years it has produced some of the best-selling cars in China, including the Santana and the Lavida.