Parts localization

 FAW and Volkswagen will integrate the power train sector, a joint venture between North Power Company. The production of the Volkswagen FAW Engine (Dalian) Company Changchun Branch first planned is an annual capacity of 300,000 units, the second planned is an annual capacity of 450,000 units. The second planned objectives to be achieved by the middle of 2014. This is the Volkswagen Group had announced the construction of seven in China among the first new plant. Changchun Branch has the domestic first multi-type EA888 engine flexible production lines. EA888 third generation 1.8L engine displacement, respectively, and 2.0L, products can match the FAW - Volkswagen's variety of VW and Audi models.

Volkswagen FAW Engine (Dalian) Co., Ltd. is a Volkswagen (China) Investment Co., Ltd. and the China FAW Group Corporation jointly set up a joint venture. EA888 turbocharged direct injection gasoline engine was in the 2007 production. After the first engine produced off the assembly line, Volkswagen FAW Engine (Dalian) Co., Ltd. annual production capacity achieves rapid growth. As Of July 2012, the company's engine products totaled 1,000,000 units.

In addition, there is news that, FAW Volkswagen will build North Power Company, and expect to integrated the north engine and transmission company of Volkswagen and strengthen Volkswagen power train layout in China. In addition to cooperate with the FAW engine joint venture Company and FAW - Volkswagen itself has a transmission company. And in Chengdu and Changchun have production of latest EA211 new engine projects, including naturally aspirated 1.6L and 1.4L TSI and other products. The dual-clutch gearbox from Volkswagen in Dalian is alone company. It is expected that several major power sectors will be integrated.

The integration of the core parts of the Volkswagen and FAW can narrow space of the international car company’s independence, and strengthen the control of a large group of foreign good model system, which is conducive to the deepening of quality automobile accessories Localization.

With the large-scale production and market competition situation requires, joint venture automobile companies are now further strengthening the development of localization in China. Some of the joint venture company pays more attention to different suppliers, which is introduced from Japan, and changan Mazda parts supply system, mostly relying on the local suppliers in China.

Automobile joint venture companies are now more focused in the vehicle development process into the local supply chain. According to reports, the next wide of each model will be implemented from the beginning of the development of parts localization, which is widely not seen in the history of the development of a new car model.

Apart from the parts, the automotive electronics and the motorcycle accessory are also need to strengthen the localization.