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"FAW and Volkswagen have reached an agreement to form a joint venture to form the North Power Company." Insider revealed. On August 16th, Volkswagen FAW officially started production of its new engine plant in Changchun. This is the first production plant announced by Volkswagen Group in seven new factories it has built in China. At the same time, Volkswagen and FAW have reached an agreement to form a joint venture to form the North Power Company. The establishment time and inclusion of the new company are being discussed. FAW and Volkswagen have included factories and companies such as FAW-Volkswagen's delivery center, Volkswagen FAW Engine Corporation and Volkswagen's wholly-owned transmission company in Dalian.
New engine factory capacity 300,000
As an important part of the Volkswagen Group's domestic powertrain production base, the Changchun New Factory of Volkswagen FAW Engine (Dalian) Co., Ltd. is located in Changchun City Automotive Technology Development Zone, covering an area of ​​nearly 94,000 square meters, and an annual planned production capacity of 30. Million, the second phase of planning annual production capacity of 450,000 units. The second phase of the planning goal will be achieved by mid-2014.
The new plant has a processing line for the production of four components including a cylinder block, a cylinder head, a crankshaft, and a connecting rod, and an assembly line including an assembly line for a cylinder head. It has the most advanced production, processing, and inspection equipment in the country and is refined. The degree of automation is at the international leading level. The formal production of the new plant will further promote the application of energy-saving and environmental protection technologies of the Volkswagen Group.
The new plant has a flexible production line of the first multi-type EA888 engine in China. The EA888 third generation engine is the first domestic engine that meets Euro VI emission standards. Compared with the previous two generations of engines, the EA888 third-generation engine has achieved a significant increase in light weight, power, emission standards and fuel economy, and the technology level has taken the lead. The EA888 turbocharged direct-injection gasoline engine was put into production in 2007. As of July 2012, the company's engine products totaled 1 million units.
The EA888's third-generation engines have 1.8L and 2.0L displacements, respectively, and the products can match FAW-Volkswagen's various Volkswagen and Audi brand models. Staff revealed that the new engine plant will start production of the engine will first match Audi Q5 and Audi A3.
Forming Northern Power Company
Another noteworthy news is that Volkswagen FAW related sources revealed that FAW will form North Power Company with Volkswagen and it is expected to integrate Volkswagen’s multiple engine and transmission companies in the north. Finally, it will strengthen the layout of the powertrain of Volkswagen in China.
At present, the engines of Volkswagen's domestic models are mainly provided by Volkswagen FAW's engine company in Dalian. Volkswagen FAW is jointly invested by Volkswagen and FAW Group, of which Volkswagen China holds 60% of the shares, and FAW Group accounts for 40% of the total investment. 150 million yuan.
FAW-Volkswagen Automotive Co., Ltd. itself also has its own transmission center, domestically produced part of the public engine. On May 15 of this year, the FAW-VW EA211 new engine project was launched in Changchun. The total investment of the new engine project is about RMB 2.3 billion. The first phase of the planned production capacity will produce 450,000 units a year, and the second phase will reach an annual production capacity of 600,000 units. Will first domestically produced 1.6L naturally aspirated and 1.4LTSI two engines, follow-up will produce 1.4, 1.2T and 1.4T three engines, covering FAW-Volkswagen's two major brands of all A-class cars and some B-class cars.
In addition, Volkswagen also invested exclusively in the construction of Volkswagen's automatic transmission company in Dalian. It is also the second in the world of Volkswagen Group, and the only factory outside Germany that produces dual-clutch automatic transmissions. January 2010 production line to achieve mass production.
The newly formed North Power Company will include specific projects. Volkswagen and FAW are currently negotiating. According to insiders, the Northern Power Company, which has signed an agreement, will soon be formally established.