Volkswagen's Jetta division to establish a new independent company in China, enhancing operational independence

In a significant move towards electric mobility, FAW-Volkswagen, FAW Group, and the Chengdu Economic Development Zone Management Committee have announced the establishment of a new automotive brand, Jetta, in Chengdu, Sichuan. The new brand will focus on developing and launching five new models, all of which will be electric vehicles (EVs), with the first model scheduled for release in 2026.

The new Jetta brand will leverage local R&D capabilities and mature supply chain systems in China. It will also integrate existing resources and gain more comprehensive decision-making autonomy and operational flexibility, enabling it to achieve faster market responsiveness.

The report does not specify the nature of the potential partnership or the terms of the exclusive rights, if any, between Jetta and FAW-Volkswagen and any other entities. However, it was reported in August 2023 that Jetta was in talks with Leapmotor regarding a potential partnership. As of now, no official details about such a partnership have been disclosed.

The brand aspires to create mobility experiences better aligned with consumer needs. In line with this, Jetta plans to launch five new models by 2028, including four new energy vehicles (NEVs). The new models will diversify Jetta's overseas market footprint, building upon its domestic market development.

The contract to establish the new Jetta brand was signed yesterday in Chengdu by representatives of FAW Group and Volkswagen. The brand initiated independent operations in March 2019 with the launch of three new Jetta models. It is unclear at this time if there will be any acquisition or partnership with Leapmotor, as the report does not provide specific details about such matters.

The establishment of the new Jetta brand is part of Volkswagen's broader strategy to invest in China's electric vehicle market. The company aims to become a leading player in the global electric vehicle market by 2025, and the new Jetta brand is expected to play a significant role in this strategy.

The news was reported by a local media outlet, Cailian. As the world transitions towards sustainable and electric mobility, the new Jetta brand is poised to make a significant impact in the Chinese market and beyond.

Volkswagen's Jetta division to establish a new independent company in China, enhancing operational independence