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Shanghai Volkswagen expands in Yangtze River Delta and heads to western regions
October 3, 2012, Wednesday
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Print Edition
Print Edition
THOUGH many car dealers experienced slow sales, Shanghai Volkeswagen has enjoyed double-digit growth in sales for July and August.
"We will take full advantage of our product, business management and scale as we continue to innovate," said Zhang Hailiang, managing director of Shanghai Volkswagen.
Behind Shanghai Volkswagen's confidence in the automobile market is its strategic adjustment and expansion.
As one of the first joint-venture carmakers in China, the company has been on a fast growth trajectory following China's car sales spurts.
Meanwhile, Anting-based Shanghai Volkswagen began to expand by taking advantage of government-provided opportunities to maximizing overall capacity and global competitiveness throughout the Yangtze River Delta.
Retaining its edge
Back in 2008, the carmaker had already started to expand its manufacturing beyond its Shanghai headquarters to Nanjing, the capital city of Jiangsu Province. The Car Plant Nanjing opened with an initial annual production capacity of 60,000 units, but today has a capacity of 300,000 units.
The Car Plant Nanjing is a major producer of top-selling Volkswagen models such as the Santana Vista and the New Passat. As a model of SAIC-Nanjing Cooperation, the plant has been an integral force in Shanghai Volkswagen. In 2011, the manufacturing training center of the plant was established, becoming the first Chinese training center for manufacturing of the Volkswagen Group.
The success in Nanjing is a milestone in the cross-regional development of Shanghai Volkswagen, and a cornerstone of its expansion program in the Yangtze River Delta.
'Lean culture'
Yizheng, Jiangsu Province, is the second expansion site for Shanghai Volkswagen in the Yangtze River Delta region.
In July 2010, the signing ceremony of the Yizheng Project was held in Nanjing. In July 2012, Shanghai Volkswagen's Car Plant Yizheng was inaugurated and put into operation.
As the first standardized plant of Shanghai Volkswagen in China, the operation in Yizheng is guided by the concept of "lean culture" in terms of lean manufacturing and lean management.
The facility is equipped with advanced technology from Germany that greatly reduces requirementsfor energy and labor intensity, setting an example in terms of eco-friendliness and energy conservation in vehicle manufacturing.
In accordance with "lean professional cultivation," the plant's training center provides employees with training courses that include "lean production training."
Regional expansion
To accelerate its regional expansion, Shanghai Volkswagen broke ground on a new plant in Ningbo, Zhejiang Province, in January 2012. Production is scheduled to begin in 2014 with an annual capacity of 300,000 cars.
Located in the Hangzhou Bay New Area and south of the Hangzhou Bay Bridge, the Car Plant Ningbo faces Shanghai Yangshan Deepwater Port and is positioned to take part in the area's "synchronized urban development."The new plant in Ningbo will make full use of available resources and rely on local industrial advantages to reduce operating costs.
Driving westward
With an established manufacturing base stretching along China's affluent eastern coast, Shanghai Volkswagen is also heading west where growth opportunities abound.
In May this year, the foundation was poured for Shanghai Volkswagen's project in Urumqi, the capital city of the Xinjiang Uygur Autonomous Region. Chinese and German stockholders attended the ceremony. The new plant in the city's economic and technical development zone will have an initial annual capacity of 50,000 units.
As the central government pushes development of western regions, living standards in Xinjiang are improving and the number of cars on the road is increasing rapidly. The plant in Urumqi will help the region establish a modern auto industry system, making a breakthrough in auto development.
Meanwhile, Shanghai Volkswagen is committed to aid local public welfare and educational programs.
In 1995 and 2001, two Project Hope schools were sponsored by Shanghai Volkswagen in Kuisu and Kuerle. By 2012, a 1.2 million (US$190,350) donation has been made by Shanghai Volkswagen to support facilities such as audio teaching classrooms, Project Hope libraries and sports facilities. A donation of 6 million yuan is expected over the coming five years.
With headquarters in Anting, Shanghai Volkswagen has achieved cross-regional development in the Yangtze River Delta and entered China's western region. Shanghai Volkswagen is developing steadily and looking forward to a prosperous future.
In 2012, Shanghai Volkswagen positioned itself in Ningbo and Xinjiang and launched a plant in Yizheng. Shanghai Volkswagen will support China's transition from a big automaker to an auto power.
"We will take full advantage of our product, business management and scale as we continue to innovate," said Zhang Hailiang, managing director of Shanghai Volkswagen.
Behind Shanghai Volkswagen's confidence in the automobile market is its strategic adjustment and expansion.
As one of the first joint-venture carmakers in China, the company has been on a fast growth trajectory following China's car sales spurts.
Meanwhile, Anting-based Shanghai Volkswagen began to expand by taking advantage of government-provided opportunities to maximizing overall capacity and global competitiveness throughout the Yangtze River Delta.
Retaining its edge
Back in 2008, the carmaker had already started to expand its manufacturing beyond its Shanghai headquarters to Nanjing, the capital city of Jiangsu Province. The Car Plant Nanjing opened with an initial annual production capacity of 60,000 units, but today has a capacity of 300,000 units.
The Car Plant Nanjing is a major producer of top-selling Volkswagen models such as the Santana Vista and the New Passat. As a model of SAIC-Nanjing Cooperation, the plant has been an integral force in Shanghai Volkswagen. In 2011, the manufacturing training center of the plant was established, becoming the first Chinese training center for manufacturing of the Volkswagen Group.
The success in Nanjing is a milestone in the cross-regional development of Shanghai Volkswagen, and a cornerstone of its expansion program in the Yangtze River Delta.
'Lean culture'
Yizheng, Jiangsu Province, is the second expansion site for Shanghai Volkswagen in the Yangtze River Delta region.
In July 2010, the signing ceremony of the Yizheng Project was held in Nanjing. In July 2012, Shanghai Volkswagen's Car Plant Yizheng was inaugurated and put into operation.
As the first standardized plant of Shanghai Volkswagen in China, the operation in Yizheng is guided by the concept of "lean culture" in terms of lean manufacturing and lean management.
The facility is equipped with advanced technology from Germany that greatly reduces requirementsfor energy and labor intensity, setting an example in terms of eco-friendliness and energy conservation in vehicle manufacturing.
In accordance with "lean professional cultivation," the plant's training center provides employees with training courses that include "lean production training."
Regional expansion
To accelerate its regional expansion, Shanghai Volkswagen broke ground on a new plant in Ningbo, Zhejiang Province, in January 2012. Production is scheduled to begin in 2014 with an annual capacity of 300,000 cars.
Located in the Hangzhou Bay New Area and south of the Hangzhou Bay Bridge, the Car Plant Ningbo faces Shanghai Yangshan Deepwater Port and is positioned to take part in the area's "synchronized urban development."The new plant in Ningbo will make full use of available resources and rely on local industrial advantages to reduce operating costs.
Driving westward
With an established manufacturing base stretching along China's affluent eastern coast, Shanghai Volkswagen is also heading west where growth opportunities abound.
In May this year, the foundation was poured for Shanghai Volkswagen's project in Urumqi, the capital city of the Xinjiang Uygur Autonomous Region. Chinese and German stockholders attended the ceremony. The new plant in the city's economic and technical development zone will have an initial annual capacity of 50,000 units.
As the central government pushes development of western regions, living standards in Xinjiang are improving and the number of cars on the road is increasing rapidly. The plant in Urumqi will help the region establish a modern auto industry system, making a breakthrough in auto development.
Meanwhile, Shanghai Volkswagen is committed to aid local public welfare and educational programs.
In 1995 and 2001, two Project Hope schools were sponsored by Shanghai Volkswagen in Kuisu and Kuerle. By 2012, a 1.2 million (US$190,350) donation has been made by Shanghai Volkswagen to support facilities such as audio teaching classrooms, Project Hope libraries and sports facilities. A donation of 6 million yuan is expected over the coming five years.
With headquarters in Anting, Shanghai Volkswagen has achieved cross-regional development in the Yangtze River Delta and entered China's western region. Shanghai Volkswagen is developing steadily and looking forward to a prosperous future.
In 2012, Shanghai Volkswagen positioned itself in Ningbo and Xinjiang and launched a plant in Yizheng. Shanghai Volkswagen will support China's transition from a big automaker to an auto power.
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