Volkswagen can now build EVs in China, claiming it can cut costs by up to 50%
Volkswagen has announced a strategic shift by fully developing and manufacturing electric vehicles (EVs) in China, marking the first time it will develop new vehicles outside Germany. This move is part of Volkswagen's "In China for China" strategy, aiming to cut development costs by up to 50% and reduce development time by 30% by utilizing local technology and suppliers. The new facility in Hefei, China, will enhance efficiency and speed in vehicle development, according to CEO Oliver Blume.
For the first time, Volkswagen can now fully develop new vehicles outside of Germany. Volkswagen claims it can cut development costs by up to 50% by building EVs in China.
Volkswagen will build EVs in China for export
As the saying goes, if you can’t beat them, join them. After opening its first Test Workshop in Hefei, China, on Tuesday, Volkswagen said for the first time that it can now develop and launch new vehicles outside of its home market.
Volkswagen’s “In China for China” strategy is gaining momentum. The new development center enables the company to develop, test, and locally manufacture intelligent connected vehicles.
The milestone “makes us even faster and more efficient,” CEO Oliver Blume said during the opening ceremony. Volkswagen claimed the new facility can slash development time by 30% while reducing costs by up to 50% by leveraging local tech and suppliers.
