VW Extends Partnership with Chinese Automaker
After 20 years cooperating, the Volkswagen Group and its Chinese joint venture partner First Automotive Works (FAW) are extending their present partnership for a further 25 years, until 2041.
After 20 years cooperating, the Volkswagen Group and its Chinese joint venture partner First Automotive Works (FAW) are extending their present partnership for a further 25 years, until 2041. In addition, the Volkswagen Group and the Chinese joint venture partner SAIC are investing in the Shanghai Volkswagen (SVW) proving ground in Xinjiang province, western China. Both agreements were signed in Berlin in the presence of Li Keqiang, premier of the People’s Republic of China, Angela Merkel, chancellor of the Federal Republic of Germany, and Martin Winterkorn, Ph.D., chairman of the Board of Management of Volkswagen Aktiengesellschaft.
Volkswagen said it and FAW will be able to significantly expand existing research and development activities in China and move into new business areas in the coming years, above all in the field of alternative drive technologies. In July of this year, Volkswagen and FAW agreed to expand their production capacity by building two new plants in Qingdao and Tianjin.
Volkswagen is further expanding its activities in western China – and is joining up with the Chinese joint venture partner SAIC to invest some €100 million in a new proving ground in the Xinjiang region to test models from Shanghai Volkswagen. The facility will be built to the south east of the Urumqi plant commissioned in August 2013, according to Volkswagen.
Together with its joint venture partners SAIC and FAW, the Volkswagen Group builds models from the Volkswagen Passenger Cars, Audi, and ŠKODA brands for the Chinese market. Vehicle production includes engines and components manufactured locally by the Group and its partners. In total, the Volkswagen Group has a presence at 17 production locations in China comprising eight vehicle sites and nine component sites. Shanghai Volkswagen has already announced the building of a new factory in Changsha to expand vehicle production capacity. Furthermore, FAW-Volkswagen is to construct two new production plants in Qingdao and Tianjin.
In the first three quarters of this year, Volkswagen Group China together with its Chinese joint ventures Shanghai Volkswagen and FAW-Volkswagen delivered more than 2.7 million vehicles, an increase of 15.2 percent on the comparable prior-year period, according to the automaker.
Originally posted on Automotive Fleet
More Vehicle Research

Stellar Products Now Available Through Sourcewell
Eligible public agencies can purchase Stellar Industries’ mechanic trucks, fuel/lube trucks, hooklifts, and tire service trucks through Sourcewell.
Read More →
NTEA Adds Future Truck Summit to Work Truck Week 2027
NTEA is replacing the long-running Green Truck Summit with something new: Future Truck Summit. The event, in collaboration with NAFA Fleet Management Association, is scheduled at the start of Work Truck Week 2027, March 9–12.
Read More →
Ford Fathom Production Takes Shape at Louisville Assembly Plant
Ford is rebuilding Louisville Assembly Plant around an entirely new EV manufacturing process. Here’s how the Universal EV Production System will change the way the Ford Fathom midsize electric truck comes together.
Read More →
Second-Quarter 2026 Commercial Vehicle Data Signals Key Shift in Fleet Turnover and Market Velocity
Work Truck Solutions’ Second-Quarter 2026 Commercial Vehicle Market Analysis reported positive indicators suggesting fleet managers are now rotating aging units, relieving pre-owned inventory friction as business owners move quickly to secure assets.
Read More →
EV Fleet Reality Check: What Operators Wish They Knew Before Electrifying Their Work Vans
Electric work truck upfits bring new compatibility questions. Learn how parts availability, OEM guidance, power demands, and route planning can affect fleet performance.
Read More →
Ford Unveils Name for Under-$29K Midsize Electric Truck
Ford has unveiled the name of its new midsize electric truck: Fathom. It will have a starting MSRP of $28,350, and preorders will begin in early 2027.
Read More →
DTNA Plans to Build New U.S. Manufacturing Facility
Daimler Truck North America plans to build a new, state-of-the-art manufacturing facility in the United States to strengthen its production capabilities across North America. The location has not been disclosed.
Read More →
Recalls You Need to Know About in August 2026
If you have Altec, Autocar, Chrysler, Daimler Truck, Ford, Heil, International, Orange EV, Paccar, Shyft Group, Volvo Trucks, or Wabash vehicles in your fleet, you should check these important recalls issued by the National Highway Safety Administration.
Read More →
DTNA to Close Portland Facility, Move Manufacturing to the Carolinas
Daimler Truck North America will shift production of the Western Star X-series, Freightliner eCascadia, and Freightliner eM2 from its Portland, Oregon, manufacturing facility to its manufacturing operations in the Carolinas.
Read More →
Kenworth T880: Powertrain & Customization Options
Vocational fleets often require trucks tailored to specific applications, and the Kenworth T880 is designed with flexibility in mind. In this video walkaround, Rachel Woods explains how the T880 can be configured to support a broad range of industries and operational requirements.
Read More →

