FAW-VW announces strategic plan for 2020, expects to sell over 1.8m vehicles in 2014

Gasgoo.com (Shanghai July 17) - FAW Volkswagen has officially released its strategic plan for 2020, the National Business Daily reported today. In the strategy, the joint venture reaffirms its goal to produce and sell three million vehicles by 2020.

Commenting on the announcement, FAW-VW Board Secretary and Office Director Sun Guowang stated: "This is not some vague sales prediction. We have already conducted a year-by-year mission analysis for this strategy, as well as conducted comparative testing."

Mr. Sun also remarked that it will be a challenge for FAW-VW to realize the 2020 goal in the face of current declining market conditions. The largest macroeconomic factor is the existence of policies limiting new vehicle purchases, while the largest question for enterprises is how to strengthen their frameworks.

FAW-VW held a summit for its fiscal performance in the first half of the year this week. Since its establishment to last month, FAW-VW has sold just over 9.19 million vehicles. FAW-VW should be able to sell its tenth millionth vehicles before the end of this year. FAW-VW has sold 849,900 vehicles over the first half of the year; that figure is 18.7 percent higher than the amount the JV sold in the first half of 2013. Among them, FAW-VW sold 625,300 VW-branded vehicles and 266,300 Audi-branded vehicles over the first six months of the year.

FAW-VW expects to manufacture and sell over 1.8 million vehicles by the end of this year. In order to fulfill this goal, FAW-VW took advantage of German Chancellor Angela Merkel's visit to China to sign an agreement to establish production sites in Qingdao, Shandong and Tianjin. The Qingdao site will focus on producing SUVs to fulfill demand for VW. Construction on the Tianjin site, meanwhile, will begin in 2017; the site will focus on boosting production capacity for both the VW and Audi brands.