ChinaAutoInfo

According to Bloomberg, Volkswagen Group CEO Herbert Diess has pledged to continue cost reduction while charting a new course for the Chinese market to address the challenges of weak demand and waning market influence.

Diess attended a commemorative event at Tongji University in Shanghai on Tuesday, marking the 40th anniversary of Volkswagen's entry into the Chinese market. During his interaction with students, he emphasized the company's commitment to the 'in China, for China' strategic focus, enhancing competitiveness through localized technology and cost advantages.

'Volkswagen Group has faced many challenges this year, and we plan to launch over 30 new models by 2030 to reshape the appeal of the Volkswagen brand with a rich product lineup,' Diess stated.

He candidly acknowledged that cost reduction is inevitable in a price-sensitive market like China, posing significant challenges to the company's technological development and production capabilities.

Currently, Volkswagen aims to accelerate product innovation and brand transformation by investing in and collaborating with Chinese companies such as Guoxuan High-Tech, Horizon Robotics, and Xpeng Motors.

Last month, Volkswagen renewed its cooperation agreement with SAIC Motor, which Diess said signifies a new beginning. Moving forward, Volkswagen will expedite product updates and introduce plug-in hybrid and extended-range models favored by Chinese consumers, featuring dual power systems of batteries and traditional engines.

Despite numerous challenges, Diess remains confident in the Chinese market. He revealed that Volkswagen plans to achieve an operating profit of 3 billion euros (approximately 23.025 billion USD at the current exchange rate) in China by 2030, solidifying its position as the leading joint venture automotive brand in the country.