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Volkswagen takes its famous Jetta brand and makes it an entirely new and distinct company that will manufacture cars for China, said Tuesday the German manufacturer.
The automaker Jetta will launch a joint venture with Chinese auto giant, First Auto Works, and will offer three models right off the bat: the existing Jetta sedan and two SUVs. Volkswagen did not say whether the models would be fully electric, but some will probably do so because of the Chinese government's requirement that automakers manufacture and sell a certain percentage of "zero emission" or "new" vehicles. energy".
"It's a very smart strategic move from VW. The Jetta's brand car has been a reliable car for a long time in China, "says Los Angeles-based journalist and consultant Alysha Webb, who has written on the Chinese auto industry for nearly two decades. The edge. "Taking an existing model and adapting it to the Chinese market has a long history among foreign manufacturers in China; VW has taken another step. "
"In China, the Jetta plays an extremely valuable role as a Volkswagen model. It has brought the mobility of the masses, as the Beetle in Europe, "said Jürgen Stackmann, member of the board of Volkswagen and sales manager, in a statement.
Volkswagen did not specify the timing of the new models, nor the possibility of selling them outside of China. But the new Jetta joint venture will sell its cars according to "innovative sales formats", such as digital showrooms and mobile sales trucks. The new brand will also create its own reseller network.
Chinese companies have tried to change the experience of buying cars. NIO, a startup of the Real Estate sector, has built a small network of salons, called "NIO Homes", where guests can relax, work or even take classes on topics like preparing an espresso.
Automakers such as Volkswagen have been in China for years, but the country's recent campaign to promote electric vehicles has increased efforts. The country is already the largest electric vehicle market in the world and the government has tweaked its rules to ensure that it stays that way.
For example, the Chinese government prevented foreign manufacturers from manufacturing cars inside the country without a joint venture agreement similar to that signed by Volkswagen with FAW. But last summer, China began easing these restrictions, which allowed Tesla to become the first foreign manufacturer to build a plant there. Tesla recently launched its third Gigafactory and is expected to begin production by the end of 2019 at the earliest.
Traditional car manufacturers are also under pressure from technology companies, which are increasingly engaging in transportation every year. In response, many are investing in new ideas, partnering with competitors or even separating. Volkswagen recently announced a "global alliance" with Ford, which will see both companies share trucks and vans. Tuesday, the the Wall Street newspaper announced that Volkswagen is also preparing to invest $ 1.7 billion in Argo, the autonomous start-up that Ford uses to power its stand-alone test cars.
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