German automobile manufacturer, Volkswagen, has announced plans to export at least 300,000 vehicles manufactured in China annually by 2030, alongside technologies developed in the country.
The company is seeking to strengthen its global competitiveness amid growing pressure from Chinese rivals, weak demand in major markets and challenges associated with the transition to electric vehicles. It has also embarked on a major workforce reduction programme.
Volkswagen Group’s China head, Ralf Brandstätter, disclosed the export target on Wednesday during a visit to Hefei, eastern China, where the company operates a major research and development centre.
“Together we plan to export at least 300,000 cars a year by 2030 but our ambition goes beyond exporting vehicles,” Brandstätter said.
The company said it would, for the first time, export technologies developed in Hefei to other markets in Asia, the Middle East and South America.
However, the technologies will not be exported to Europe for now.
The planned exports will include the electronic architecture used in its vehicles, developed with the assistance of Chinese electric vehicle manufacturer Xpeng.
Volkswagen also intends to export its vehicle platform and driver-assistance system produced in partnership with Horizon Robotics, a Chinese technology company.
The German automaker hopes the innovations will help it tackle intense competition and slow growth in China and other international markets.
“What we develop in China makes Volkswagen more competitive around the world,” Brandstätter said.
He added, “China-developed technologies are becoming a key part of the global setup of Volkswagen Group and a strategic advantage.”
In September, Volkswagen reached an agreement with unions to eliminate an additional 50,000 jobs by 2030, bringing its total planned workforce reduction to approximately 100,000.
The company has also faced lasting reputational damage from the 2015 emissions scandal, which came to light after California regulators discovered that Volkswagen had installed illegal software in millions of diesel-powered vehicles to manipulate emissions test results.
Meanwhile, rival Mercedes-Benz on Tuesday became the third major German carmaker, after Volkswagen and BMW, to issue a profit warning for the year, citing challenging business conditions in China.
