With being one of the first carmakers to venture to China, Volkswagen in the meanwhile has assumed a leading position in the Chinese car market. In 2005, the group supplied around 572,000 vehicles. Volkswagen set up two joint ventures for the production of automobiles in China, one in Shanghai (1984) and one in Changchun (1990). In 2003, a gearbox joint venture began operations in Shanghai, followed by a joint company for manufacturing powertrain components in 2004. One joint venture focussing on modern engine production started series production just recently, a second is currently being set up.

In 2004, Volkswagen concentrated its strengths in founding the Volkswagen Group China, governed by a management team responsible for sales and marketing, technology, purchasing, personnel, governmental relations and finance. VGC’s tasks include supervision of the Chinese associated companies of Volkswagen and the set-up of new business segments.

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