Every time I sell two CCs, two Magotan, three Sagitars, and six golf balls, one is from FAW-Volkswagen. What kind of concept is this? In addition to being invincible on the Brazilian court, the "German Chariot" is equally unscrupulous in the Chinese auto market, grabbing a larger market share with a fierce attack.
According to data from the China Association of Automobile Manufacturers, in the first half of this year, FAW-Volkswagen ranked second with a total sales volume of 906,000 vehicles. The total sales volume of North and South Volkswagen accounted for nearly 20% of the total passenger vehicle market. In the bicycle sales ranking, the Volkswagen brand is the only one in the top ten list.
With the increase in sales, Volkswagen has also accelerated its expansion in the Chinese market. On July 7, under the witness of Chinese Premier Li Keqiang and German Chancellor Angela Merkel, FAW and German Volkswagen signed a "Joint Statement on the Establishment of a New Production Base of FAW-Volkswagen" in Beijing. The statement said that China and Germany will further deepen long-term strategic partnership, and in turn establish new production bases in FAW-Volkswagen East China and North China in Qingdao and Tianjin to meet production capacity and market needs.
It is reported that FAW-Volkswagen's first and second plants in Changchun have a capacity of 900,000 units and are basically fully loaded. The third plant in Chengdu currently has a capacity of 450,000 units, which can reach 600,000 units after expansion. The fourth plant is 300,000 units, and the current capacity of 300,000 units in the second phase has already started construction. In other words, the above four plants currently have a total capacity of 1.65 million units and an average capacity of 2.1 million units.
This year, FAW-Volkswagen's annual sales target is 1.7 million units, and may reach 1.75 million units. The expansion is imminent. According to Li Pengcheng, a spokesman for FAW-Volkswagen, the two new bases, the Qingdao plant, will be built first and will be completed and put into operation in 2017 or 2018, with a planned production capacity of 300,000 units. Due to the flexible production, it is not determined which models will be produced in Qingdao. The news that the FAW Volkswagen SUV that was previously reported by the media will be produced in Qingdao is not true.
Sun Guowang, secretary of the board of directors of FAW-Volkswagen and director of the General Manager Office, told reporters that the Tianjin factory will produce FAW-Volkswagen cheap cars and the media misrepresented. From the current situation, both the Qingdao plant and the Tianjin plant will produce FAW-Volkswagen brand products. The cheap car project is still under discussion and is expected to be officially announced during the year.
“The cheap car project should not use the public logo, but as for the final use, it is still under discussion.” Sun Guowang said that FAW-Volkswagen may set up a subsidiary to operate the project, because the launch of the new brand is a very complicated The project involves many problems such as products, channels and suppliers. Therefore, both China and Germany are very cautious. But what is certain is that both China and Germany are very optimistic about this project and are trying to speed up the project.
In the Chinese auto market, FAW-Volkswagen can be said to be a god-like existence. There are no A0-class cars, no SUV products, no MPV products, and even no new cars this year. However, with the appeal of the A-class and B-class cars, it has created an annual sales of 1.7 million units. With the increasingly fierce competition in the A-Class and B-Class markets, is this situation sustainable?
“FAW Volkswagen has planned a very complete product line, including SUVs, MPVs and A0-class cars.” Sun Guowang said that FAW-Volkswagen's SUV products are currently under development and will be available as soon as possible in early 2016. In the “2020 Strategy”, FAW-Volkswagen will reach a production and sales volume of 3 million units. At that time, the Audi brand will also build a system capacity of 1,000 million units per year.
Fan Xingbo, director of public relations at FAW-Volkswagen, admits that the rapid development of Volkswagen in China over the years has largely been attributed to the “fan economy”, which is also known as the “God Car Party”. This is also the main reason for supporting FAW-Volkswagen to achieve 10 million vehicles in the year. As the Chinese auto market becomes more mature, the homogenization of products becomes more and more serious. In the future, consumers will change from buying a product to buying a brand. Therefore, the ability to build a brand system is fundamental to the sustainable development of automotive companies.

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