A prospective buyer inspects a Volkswagen in an automobile show in Shanghai last year. (Photo : Reuters)
Confident that the sales trend from two previous quarters will continue, Volkswagen AG China chief Jochem Heizmann said on Sunday, April 24, that it plans to invest 4 billion euros ($4.49 billion) with its joint venture partners this year, according to a report by Reuters.
Ahead of the Beijing Auto Show which started on Monday, April 25, Heizmann also told reporters that the company will focus on markets for the sports utility vehicle (SUV) and new-energy vehicle (NEV) in the next several years.
VW is trailing in the SUV boom in China and its car sales dropped 3.4 percent, at 3.5 million cars, last year. However, the company plans to launch 10 locally made VW-, Audi- and Skoda-badged SUV models in the future.
"There is an SUV offensive on the way," Heizmann said. "It will begin this year with a B segment SUV." He gave no details on whether the model will be produced by a joint venture or a brand. B segment refers to small cars.
VW expects to sell about a few hundred thousand new-energy vehicles as part of the 2 million NEVs targeted by government by 2020.
In addition, Heizmann said that 15 new plug-in hybrids or purely electric cars will be built by VW in China in the next three to four years as the company pushes to develop online connectivity of its cars. The plan would involve hiring 30,000 people, the report said.
A so-called future lab made up of digitalization experts and designers has been formed by VW to work on improving how people will interact with their cars. The move is seen as an effort by VW to reclaim itself after the emissions scandal.
The company is ready to face any recall claim, especially diesel-related issues, in China, Heizmann said. Last year, the company got into a scandal when it was found that it modified its cars to rig the emissions tests.
Although the issue has affected only about 2,000 cars in China, VW has been talking with regulators across the world to try to compensate.
According to data from the China Automobile Makers Association, VW was close to being unseated by General Motors Co. as the top foreign automaker in China following the scandal.
