German automobile manufacturer Volkswagen has announced plans to export at least 300,000 vehicles manufactured in China annually by 2030 as part of efforts to strengthen its global competitiveness.
According to AFP, the company also intends to export automotive technologies developed at its research and development facilities in China.
Volkswagen Group’s China chief, Ralf Brandstatter, disclosed the plan during a visit to Hefei in eastern China, where the manufacturer operates a major research centre.
The announcement comes as Europe’s largest carmaker faces intense competition from Chinese manufacturers and weaker demand in important international markets.
Volkswagen announces major export target
Brandstatter explained that the company was restructuring its international operations to make greater use of its Chinese manufacturing and technological capabilities.
“Together we plan to export at least 300,000 cars a year by 2030, but our ambition goes beyond exporting vehicles,” he said.
The company intends to supply vehicles manufactured in China to several international markets.
Volkswagen also plans to export automotive technologies developed in Hefei to countries across Asia, the Middle East and South America.
However, the company does not currently intend to introduce the China-developed technologies into its European operations through this export initiative.
Volkswagen partners with Chinese technology companies
The manufacturer disclosed that the planned technology exports include vehicle electronic architecture developed with Chinese electric vehicle company Xpeng.
Other technologies include vehicle platforms and driver assistance systems developed in partnership with Horizon Robotics.
Volkswagen hopes these innovations will help it reduce production costs and compete more effectively with emerging automobile manufacturers.
“What we develop in China makes Volkswagen more competitive around the world,” Brandstatter said.
He maintained that technologies developed in the country had become increasingly important to Volkswagen’s international business strategy.
Volkswagen faces competition, job cuts
The new export plans come as Volkswagen struggles with declining demand in some markets and growing competition in the electric vehicle industry.
The company has undertaken restructuring measures intended to reduce costs and improve efficiency.
In September, Volkswagen reached an agreement with labour unions to cut another 50,000 jobs by 2030.
The additional reduction brings its planned workforce cuts to approximately 100,000 positions.
Other German automobile manufacturers are also facing difficult market conditions.
Mercedes-Benz recently issued a profit warning, citing challenges in China.
Despite the pressures, Volkswagen maintained that increased use of Chinese manufacturing and technology would support its longer-term expansion.
The company expects the strategy to strengthen its position in international markets while responding to changes in consumer demand.
