Volkswagen invests €1B towards China EV center

The new center for development, innovation, and procurement for connected electric vehicles will be headquartered in Hefei

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On April 18, the Volkswagen Group announced it is investing over €1 billion in a new development, innovation, and procurement center for “fully connected intelligent electric vehicles” in Heife, China.

Here are some key points:

• A new company named “100%TechCo” englobes vehicle and component R&D as well as procurement and aims to reduce development times for new products and technologies by 30 percent.

• It will incorporate tech from local suppliers early in the development process, with the goal of tailoring vehicles to the needs of Chinese consumers.

• The unit is anticipated to launch in early 2024 and will comprise more than 2,000 employees from procurement and R&D. Its CEO is Marcus Hafkemeyer, CTO of Volkswagen Group China.

• The formation of 100%TechCo is part of Volkswagen's “in China, for China” strategy.