History of FAW-Volkswagen Audi > About Audi > FAW-Volkswagen Audi>Vorsprung durch Technik

History of FAW-Volkswagen Audi

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Audi, constantly driven by technologies

As a pioneer, precursor, and leader in Chinese high-end car industry, ever since its entry into China, Audi has positioned itself at the leading edge, and contributed greatly to building a foundation for this industry and boosting its growth.

Following thirty years of development, FAW-Volkswagen has succeeded in completing a strategic layout that covers Northeast China, Southwest China, South China, East China, and North China. Concrete groundwork has been laid for its sustainable growth in this market. Looking ahead, FAW-Volkswagen Audi will continue to adhere to the strategies of “lean manufacturing”, “intelligent manufacturing”, and “green manufacturing” in order to achieve continued production optimization, logistics deployment, and regional industrial transformations, thus further promoting Chinese automotive industry.

A new form of joint venture

Decades ago, Chinese automotive industry was very much behind the times, and barely had the capability to produce cars on a large scale. A turning point appeared in Changchun on May 17, 1988 when FAW and Audi signed Contract for Technical Transfer License on Production of Audi Cars by FAW and a contract concerning transfer of an old Audi 100 body mould from South Africa factory to FAW by Volkswagen. The former became the first luxury car technical transfer contract in the history of Chinese automotive history.

Establishment of the cooperative relation between FAW and Audi was followed by shipment of a few thousand tons of drawings and other materials from Audi headquarters at Ingolstadt, Germany to Changchun, China. Later, concurrent with the manufacturing of the first Audi 100 in China, FAW and Audi began to gradually set up production standards and a quality assurance system in line with world leading standards. Although the cooperation initially took the simple format of technical transfer, it did lead Audi into Chinese market, and the time was perfect. Starting in 1990s, intensive discussions were made on the development plans and directions of Chinese automotive industry among government authorities, the industry, and other related sectors.

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Establishment of a local R&D system

A key to the great success brought by the cooperation between FAW and Audi lies in the FAW-Volkswagen Audi operation model with a focus on “localization of the whole value chain”. Built on the consistent global standard of Audi, this model enabled Audi to be the first among all high-end automotive brands to start localization in China, and so far the most successful one.

Setting up and upgrading the product localization R&D system for Chinese market can be viewed as a key step towards building capabilities required for “Full value chain localization of FAW-Volkswagen Audi”. As Chinese market continues to grow bigger, the important tasks faced by car manufacturers include further implementation of local production, R&D, and transformation plans, adaptation to Chinese driving habits and traffic conditions, and development of high quality products. Today, the R&D function of FAW-Volkswagen has been aligned with its global strategy to develop “third-generation” limousines and devices devoted to Chinese consumers. Apart from that, all domestic models will be equipped with a start/stop system and energy recovery devices, and “aluminum body part whole-process production” technique will be incorporated in the production lines. From vehicle body development and powertrain matching to chassis optimization and component production, FAW-Volkswagen has built a complete vehicle R&D system. Foundation of Audi Asia R&D Center is a milestone of the successful localization undertaking in China.

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A synonym for Chinese high-end cars

The endeavors made by Audi to fulfill its localization tasks and responsibilities throughout the value chain have been highly recognized in Chinese market. For thirty consecutive years, it has remained the No.1 seller in Chinese high-end automotive market, and succeeded in conveying “enterprising, honorable, and dynamic” brand value to the masses.

Chinese market is now growing rapidly, setting new automotive consumption trends while brewing the next waves of automotive industry transformations. As the first high-end car brand to enter Chinese market, Audi has years of abundant operation experiences behind it, and is therefore always positioned to lead this market.

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In the future plans, FAW-Volkswagen Audi will proceed with development of products for Chinese consumers, taking into account demands from different segments. Marketing initiatives related to new energy cars, intelligent cars, and mobile traveling will be materialized to further boost brand awareness among users.

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Sustainable and novel marketing models

User experience has been the permanent focus of FAW-Volkswagen Audi. The first-of-its-kind channel construction program, diverse public marketing activities, and unique experience platforms bring “real Audi experiences” to Chinese consumers. For years, Audi has been regarded as No. 1 service provider among all high-end card brands.

Facing the era of Internet+, FAW-Volkswagen Audi is advancing with the times by seeking innovative marketing and further brand building with big data tools. At FAW-Volkswagen Audi, the future marketing plans will be aligned with its product strategies, and implemented organically and systematically. Continuous efforts will be put into brand building and user experiences based on the customer-oriented policy. Emotional resonances with Chinese consumers will be sought to better serve them.

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FAW-Volkswagen Audi, with its sustainable service capabilities, is continuously seeking new service patterns beyond traditional service concepts. There is a constant focus on improving customer loyalty and full-channel digital service experiences, and ongoing efforts are made to create new service and marketing models in the dimensions of human, car, society, and life.

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Devotion to a win-win relation with suppliers

In the course of business development, FAW-Volkswagen Audi is always committed to helping suppliers with capability improvement, thus successfully driving co-development of all upstream and downstream links in the industrial chain. All these can’t do without the strong purchase system of FAW-Volkswagen Audi.

Among all high-end car brands, FAW-Volkswagen Audi was the first to start localization of luxury car components, and contributed greatly to the rapid increase of localization rate of such components. It therefore has provided both precious lessons and a solid foundation for development of Chinese automotive industry towards high-end market.

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Thirty years of FAW-Volkswagen Audi – always ahead of the times

A new era always comes with new waves of opportunities and missions, and this is also true in automotive industry. Thirty years ago, FAW-Volkswagen Audi opened a door for Chinese automotive industry, and brought advanced auto technologies and experiences to China. Following that a new form of joint venture initiated by Chinese and German cooperators rose and boomed. In the future, FAW-Volkswagen Audi will continue such high-level cooperation between these two countries through technical development and innovation, thus continuously driving evolution of Chinese automotive industry.

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