On the occasion of SAIC Volkswagen's 40th anniversary, SAIC Motor and the Volkswagen Group signed an extended joint venture (JV) agreement in Shanghai, further strengthening their long-term partnership and prolonging the joint venture period of SAIC Volkswagen until 2040. “We are now raising our partnership with SAIC to the next level by making key strategic decisions in areas of product, production and decarbonization. Up to 2030, SAIC Volkswagen will launch 18 new models. In total, 15 of these cars will be exclusively developed for the Chinese market,” Ralf Brandstätter, Member of the Board of Management of Volkswagen for China, said in a statement. China is, and will remain, a cornerstone of Volkswagen Group's global strategy. Together with our JV partners, we are committed to expanding our investments in the region, Brandstätter said.
Other collaborations between Chinese and European automakers are ongoing despite the headwinds posed by the EU's protectionist approach on Chinese EVs. China's Chery Automobile and Spain's Ebro-EV Motors celebrated the start of vehicle production at their JV in Barcelona, Spain, with the s700 SUV the factory's first output. The two auto companies signed an agreement in April to develop new EVs through the JV in Barcelona, which is expected to create 1,250 jobs and churn out 150,000 vehicles in 2029. Leapmotor International, a Netherlands-headquartered JV between Chinese automaker Leapmotor and Stellantis, started sales operations in Europe in September. It plans to expand distribution to the Middle East, Africa, the Asia-Pacific and South America from the fourth quarter of this year.
Extensive opportunities for collaboration and shared interests have fostered a mutually beneficial environment between Chinese and European auto companies. However, the EU's decision to impose extra tariffs on China-made EVs could have a detrimental impact on global supply chain cooperation, Jian Junbo, Deputy Director of the Center for China-Europe Relations at Fudan University's Institute of International Studies said. This not only threatens the trade relationship between China and Europe but also risks to hinder the development and technological innovation of the global EV industry, Jian said. He noted that the extra tariffs will impede the adoption of EVs within the EU and impede the innovation of European automotive companies, possibly leading to a loss of competitive advantage in the EU, the Global Times reports.
