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Volkswagen plans to export at least 300,000 vehicles a year from China by 2030, a sign that Europe’s largest automaker is looking to its Chinese operations to help rescue its fortunes, the company said Wednesday.
The company also said that for the first time it will export technology developed in China to other markets in Asia, the Middle East and South America. Europe is not part of the plan for now.
"Our ambition goes beyond exporting vehicles," Ralf Brandstatter, head of Volkswagen Group’s China operations, said during a visit to Hefei, in eastern China, where the company has a major research and development center.
The exported technology includes the vehicles’ electronic architecture, developed with Chinese automaker Xpeng, as well as a vehicle platform and a driver-assistance system built with Chinese firm Horizon Robotics.
Brandstatter said the work done in China makes Volkswagen more competitive worldwide and is becoming a strategic advantage for the group.
The announcement comes as Volkswagen struggles with stiff competition from Chinese rivals, weak demand in key markets and an uneven shift to electric vehicles.
In September, the company reached an agreement with unions to cut another 50,000 jobs by 2030, bringing its planned workforce reduction to about 100,000.
The carmaker’s reputation also remains tarnished by a 2015 scandal, in which California regulators found it had installed illegal software in millions of diesel vehicles to cheat on emissions tests.
Volkswagen is not alone in feeling the strain.
On Tuesday, Mercedes-Benz became the third of Germany’s big three automakers, after Volkswagen and BMW, to issue a profit warning this year, citing difficulties in China.
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