Volkswagen has announced that it will be investing around $1 billion euros to establish a new development, innovation and procurement center in China.
The new center was announced at Auto Shanghai 2023 and will be called 100%TechCo. The company will set up the new facility in Hefei.
The new center aims to combine vehicles and components research and development (R&D) teams with purchasing, leverage synergies in the development process and integrate state-of-the-art local technologies into product development at an early stage, the company said.
The center is to be launched in early 2024 and will comprise of more than 2,000 employees from procurement and R&D. It aims to gradually shorten the development time of new products and technologies by around 30 percent.
The establishment of 100%TechCo is reportedly an important step of the company’s “in China, for China” strategy.
