Volkswagen's joint venture company with China's FAW Group, called FAW-Volkswagen Automobile, has just opened its new vehicle proving ground in the capital of Northeast China's Jilin province. The newly opened vehicle testing center is aimed at accelerating the production and release of new vehicles in China.
Both Volkswagen and FAW invested around $240.6 million to establish the new facility. The first stage of the project includes a 6 square kilometer area that sports a test road that is more than 60 kilometers in length. The companies had already broken ground on the second stage of the project, which is expected to be put in full operation by March 2020.
The new vehicle proving ground in Changchun sports five different facilities that will test various areas of newly rolled out vehicle models. The facilities will conduct rigorous tests on a vehicle's durability, its airbag effectiveness, performance, and top speed capabilities.
There are also facilities that will check 26 specific criteria of the vehicles and 15 standard tests that are required by domestic regulations.
According to FAW Group board member Qin Huanming, the opening of the new proving ground should drastically accelerate the transformation and enhancement of the joint venture company's ability to serve Chinese consumers. The executive further elaborated that the facility should serve to deepen cooperation between the two companies as they continue their operations in the country.
Volkswagen and FAW are aiming to drastically improve their research and development capabilities within China. This should result in less dependence on overseas facilities, which will, in turn, result in more Chinese-oriented products.
The new testing grounds also sport roads that mimic typical Chinese road conditions. The company hopes to introduce more products in the coming years that are more suitable for Chinese consumers.
The joint venture company, which is headquartered in the southwestern part of Changchun, was originally formed in 1991. The company currently has five production facilities in China, which churn out a variety of Volkswagen, Audi, and Jetta-branded vehicles. The plants are located in Chengdu in the Sichuan Province and in Foshan in the Guangdong Province.
FAW-Volkswagen is majorly owned by FAW Group, which holds a 51 percent stake. Volkswagen AG holds a 20 percent stake in the company, while the rest is owned by Audi AG with a 10 percent stake and Volkswagen China Invest with 19 percent stake.
Last year, the company reported cumulative terminal sales of 2.05 million units, a 2.6 percent year-on-year increase when compared to the year prior.
