Jochem Heizmann: Expected China Made Electronic Car in 2016

Year 2014, Volkswagen Automobile Group sales around the world is expected 10 million, which has realized 10 million sales 4 years in advance. Recently, Winterkorn, president of director of board of Volkswagen Automobile Management says at Berlin Volkswagen annual conference of year 2014 that “Volkswagen will invest another 84 billion euros into automobile plants, products and technology from now to year 2018. It includes 18 billion euros into Chinese joint ventures.”

When introducing new cars into market, Volkswagen will continuous to develop its modularization strategy. Winterkorn says Volkswagen auto has controlled the key point of profit improving from modularization strategy. In year 2014, engines made from modular querbaukasten platform are more than 2 million, but the figure in year 2013 was 1 million. And the figure will mount to 4 million in 2016. Meanwhile, Volkswagen will upgrade its plant in China to adopt modularization production. According to introducing of Jochem Heizmann, president of Volkswagen China, there are 2 plants in China can modularization production. The next investment will focus on modular querbaukasten build in China for the next 5 years.

According to introduction, the main part of modularization strategy of Volkswagen is based on modular querbaukasten. The platform can produce Audi A3, Golf and Magotan. “Modular querbaukasten will apply in 20 plants of 12 counties around the world. Modularization strategy is becoming the core creative platform.”Winterkorn says, besides, Volkswagen owns MLB platform as well, which mainly produce Audi.

When forwards year 2014, Winterkorn looks says it is still high risk of global economy. Global automobile industry growth will slow down. European automobile market has signal of recovery, but still stable and slow. Emerging markets appears some resistance. However, China stills the growth engine for Volkswagen and the entire automobile industry.

Last year, total sales of Volkswagen are 9.7 million, which has increased 5%. It is slightly less than 9.98 million sales of Toyota. In Chinese market, Volkswagen sales are 3.27 million, and its equity operation revenue created in China is 4.3 billion euros. Pan Shuai, CFO of Volkswagen, says that Volkswagen sales of year 2013 globally have still increased 2.2% to 197 billion euro. Operation profit is 11.7 billion euro, which has exceeded 2012 financial year. Return of automobile business investment is 14.5%. According to introduction, except two joint ventures in China, single car price has slightly decline. What’s worth for notification, operation revenue of Volkswagen Finance is 1.6 billion, which has increased 14% over last year. And its lease contact has sold 4.3 million around the world, which has increased 13%.