Volkswagen's Great Chinisefication
Good news for Chinese parts makers: Volkswagen, by far the biggest brand in China, wants to gradually achieve full localization in China. In regular English: Volkswagen’s Chinese joint ventures plan to locally source all auto parts and components needed to make cars in China, and will stop importing them.
This according to Winfried Vahland, still Volkswagen of China president, but soon Chairman of Skoda. He is quoted in Gasgoo.
Sure, the local content of the Jetta and Santana is at 95 percent. Newer products, such as the Golf, the Magotan, the CC, the Skoda Superb, still have a lot of imported key components. Sounds a bit counter-intuitive when major automakers source a lot of their parts in China to save cost. This is going to change.
A lot of the more complex parts, turbochargers, DSGs, electric and electronic parts will be made in China ASAP. More research and development should be done in-country as well.