SAIC Volkswagen marked its 40th anniversary by signing an agreement on Nov 26 to extend its joint venture with the German auto giant Volkswagen Group, based in East China's Shanghai.

Representatives from SAIC Motor and Volkswagen Group shake hands during the ceremony. [Photo/eastday.com]

The new agreement is said to strengthen their long-term partnership, extending the joint venture period to 2040. This marks the second renewal since their initial agreement in 2002, bringing the total partnership duration to 55 years.

SAIC Volkswagen was established in October 1984 when China and Germany signed a joint venture contract in Beijing. Together, they are widely credited with significantly advancing China's automotive parts industry and contributing to the rapid development of a modern automotive manufacturing system.

According to Volkswagen Group China Chairman and CEO Ralf Brandstatter, the company remains committed to its "In China, for China" strategy and plans to launch a new generation of electric vehicles by 2026.

The renewed agreement will boost research and development resources for SAIC Volkswagen in emerging technologies, enabling the company to integrate more deeply into China's industrial ecosystem.

Both parties are adjusting their production strategies by reducing the output of fuel-powered vehicles and shifting focus towards smart, connected electric vehicles.

By 2030, SAIC Volkswagen aims to introduce 18 new models, 15 of which will be designed specifically for the Chinese market.

For his part, SAIC Motor Chairman Wang Xiaoqiu emphasized the importance of collaboration between Chinese and foreign partners in navigating the global trends of electrification and smart technology in the automotive industry.

Sources: Jiefang Daily, eastday.com