As far as we know here at Naijauto, every automaker in the west wants to have a piece of the action in sales from the biggest auto market in the world – China. This move by the German carmaker Volkswagen speaks volume of what automobile manufacturers will do to get into this market.
The purpose of this is
The aim of Volkswagen in this new prospect is to make entirely new models from the existing Volkswagen Jetta to cater to Chinese customers as it announced on Tuesday. This is not going to be a German carmaker-only affair, Volkswagen is going to be in partnership with First Auto Works - a Chinese owned company, in a joint venture that will produce three models for starters. The three models will include the well-known sedan the Volkswagen Jetta, and two entirely new SUVs. It is not public knowledge yet if these models will be EVs but it is certain they will conform to the Chinese government laws for foreign auto manufacturers. One of these laws that the Chinese government holds dear is the manufacture of “zero emission” vehicle or “new energy” vehicle, as a percentage of the total car manufactured by foreign car makers.
Volkswagen Jetta is considered a mainstay for its dependability and sensual beauty!
These laws have ensured that China becomes the leading destination of EVs even though they have been a little slack over these few years with these regulations. Their light-handedness was what enabled electric car giant Tesla, to gain ground with the opening of its third Giga-factory without agreeing to any joint venture with any state-owned manufacturer. This feat by Tesla is unprecedented by any foreign automobile manufacturer in the China market, and it makes Tesla the first foreign manufacturer to do so.
Volkswagen repositioning – a sharp move!
Volkswagen move has been applauded as a wise and astute one given Jetta’s long history of dependability for the China people. This is according to a Los Angeles journalist Alysha Webb, who has reported about the China auto industry for almost 20 years. It is a well-known phenomenon among automakers to redesign particular models for improved sales in that market, but Volkswagen has raised the bar with this Chinese venture.
A spined version of Volkswagen Jetta with a Chinese face and plate!
Jürgen Stackman, who leads the sales arm and seats on Volkswagen’s board of management, says “in China, the Jetta plays an extremely valuable role for us as a Volkswagen model. It has brought mobility to the masses, just like the beetle once did in Europe.”
There is no clear date stated for the commencement of production, neither is there a clarification for sales of the models outside China. However, VW has stated that it will use uncommon sales strategies including digital showrooms and mobile sales truck while setting up exclusive dealership networks for the brand. This will be following in the footsteps of companies like NIO an EV start-up whose studies of car buying behaviours has produced places such as NIO houses. These houses are styled for lounging and hanging out for customers with possibilities for learning soft skills like making espressos while at it.
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The modus operandi on ground!
With the Chinese government pushing the promotion of EVs through regulations, it has made automakers like Volkswagen to put twice as much effort into manufacture, despite their age-long presence in China. China auto laws favour EVs and are being continuously amended to help China maintain its position as the country with the highest number of EVs.
Volkswagen Jetta 2019 SEL with interiors that are out of this world!
Mainstream Chinese auto manufacturers have also been caught up in this frenzy as technology companies are increasingly finding their way into transportation. This in Naijauto opinion, has caused these companies to make different moves including investing more money in new ideas, splitting companies up to form new ones, or merging with competitors. Volkswagen stated recently its “global alliance” with Ford to share trucks and vans while also making plans to invest a $1.7 billion fund in Argo. Argo is the self-driving start-up used by Ford for powering its autonomous testing cars.