Shanghai, August 3 (Gasgoo.com) Owing to the rising cost of imported raw masteries, Volkswagen's Chinese unit plans to purchase all the auto parts and components locally, indicating that the German carmaker will gradually achieve full localization in China, the company said recently.
Although Volkswagen has raised the localization rate of its Jetta, Santana and other products in China to 95%, the key components of its other products, such as the Golf, the Magotan, the CC, the Skoda Superb, etc., still need to be imported from overseas at present.
Import tariffs make procurement of raw materials from China more cost effective, Volkswagen, therefore, will cease imports of components from outside China, said Winfried Vahland, former Volkswagen China President and current Skoda Chairman.
Volkswagen will produce the turbocharger in China in the future, reducing the production cost by 20%, and carry out more research and development in the country as well. Morevoer, electric motors should be developed and produced locally, Winfried Vahland said.
Volkswagen wants to boost revenues from its China operations to 30 billion euros in 2010.
