Buried deep in a lengthy media release, the Volkswagen Group has quietly let slip that it has plans to use its giant manufacturing operations in China to commence exports.
The information, at the end of the 12th paragraph of a screed concerning financials and an expansion of electric vehicle production sites:
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“At a future date, the Group is also planning to export vehicles that will be manufactured in China – initially to the Philippines and later to other South East Asian markets”.
One of the most extraordinary things about the Volkswagen Group’s activities in the PRC is its lack of an export business. The company has for decades been especially cautious about potentially upsetting its home market unions and so kept the products from its Chinese manufacturing within the country. Rivals, such as GM and Honda have been less coy and have exported cars for some years to many countries, including the USA. The same applies to Volvo.
Exports to the Philippines will not be the first time that VW China has shipped cars to a market in Asia-Pac: more than a decade ago, SVW, the Shanghai Volkswagen JV (now SAIC Volkswagen) exported a few hundred units of the Polo Classic Sedan to Australia. The car was not a success there.
One further surprise in Volkswagen’s media announcement was a statement concerning SEDRIC, an experimental passenger pod prototype which has been displayed at several motor shows, most recently at Geneva. The company says that SEDRIC will be put into production but is yet to reveal under which division. The concept is unusual for carrying ‘Volkswagen Group’ branding.
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By GlobalData
