Is it serious? Volkswagen to Jointly Produce Commercial Trucks with FAW

A few days ago, Andreas Renschler, CEO of Volkswagen Truck Division, told the German "Manager" magazine that Volkswagen plans to build a joint venture with a Chinese company to produce commercial trucks to expand its business in China. The joint venture may be FAW Group.

He said: "We are considering how to expand our business in China." He also pointed out that FAW Group is a very powerful automobile company in China.

This is a bad news for China's commercial truck manufacturer China National Heavy Duty Truck, because China National Heavy Duty Truck and Volkswagen have formed a joint venture.

When asked about the joint venture between Volkswagen and China National Heavy Duty Truck, he said that the MAN business unit under Volkswagen held a 25.1% stake in Sinotruk, but this company seems to have been in full swing, with little growth, and the performance has fallen Powerful.

One of the reasons that Volkswagen favors FAW Group is that FAW is a state-owned auto company and has experience in cooperating with Volkswagen. The two companies set up a joint venture FAW-Volkswagen to produce Volkswagen and Audi brand cars.

Also headquartered in Jinan, Shandong, China National Heavy Duty Truck, a state-owned company, is China's third-largest commercial truck manufacturer. The full name of the company is the China Heavy Truck Group, which also exports heavy vehicles to South America.