Expected to be launched in 2024 in Hefei, the new EV R&D centre is expected to shorten the time taken to develop new products and technologies by nearly around 30%
Volkswagen to launch EV innovation centre 100%TechCo in China with €1bn investment. (Credit: Volkswagen)
Volkswagen Group said that it will invest nearly €1bn to establish 100%TechCo, a development, innovation, and procurement centre for fully connected intelligent electric vehicles (EVs) in China.
The new centre is expected to be launched in 2024 in the southern Chinese city of Hefei.
100%TechCo aims to integrate vehicles and components research and development (R&D) teams with purchasing. It will utilise synergies in the development process and combine local technologies into product development at an early stage.
The new EV R&D centre is expected to shorten the time taken to develop new products and technologies by nearly around 30%.
In terms of R&D operations, 100%TechCo will integrate procurement into a joint unit along with bundling R&D for vehicles and components in China, said the German automotive company.
Besides, 100%TechCo will combine the development projects of all the joint ventures of Volkswagen Group in China, namely SAIC, Volkswagen Anhui, and FAW-Volkswagen.
Volkswagen said that 100%TechCo will include over 2,000 employees from procurement and R&D. 100%TechCo will be led by Volkswagen Group China chief technology officer Marcus Hafkemeyer.
Hafkemeyer said: “With 100%TechCo, we are opening a new chapter in our cooperation with our joint venture partners in Changchun, Shanghai, and Hefei, as well as the Group’s brands. We are fostering seamless collaboration to bring customized products to the Chinese market even faster and more efficiently.
“In a first step, 100%TechCo will steer the development of the models of the Volkswagen Anhui joint venture based on the MEB platform and will be responsible for the development of China-specific platform requirements and modules with a focus on electric mobility.”
The investment in the new EV R&D centre is a part of Volkswagen‘s ‘in China, for China’ strategy.
In this regard, the company recently announced a partnership with Horizon Robotics, a hardware and software solutions provider for automated driving in China.