Volkswagen to extend its joint venture with FAW Group for 25 more years

Article by Christian A., on November 30, 2012

After the conclusion that none of the parties were guilty of infringing technology patents, Volkswagen has entered a deal with China's FAW Group to extend their joint venture for 25 years more. In a statement, Volkswagen said that both companies have agreed to extend their partnership beyond 2016, when the existing contract expires.

The venture’s product portfolio will be expanded and they will also be closely cooperating to develop new business activities. The deal was inked after a meeting attended by VW CEO Martin Winterkorn and FAW Group Chairman Xu Jianyi. They reportedly talked about engine and gear box patents and they determined that no rights were violated.

Last July, German newspaper Handelsblatt reported that FAW had unlawfully copied engine technology and gathered offers from suppliers for major components to a VW gearbox. The German newspaper didn’t indicate the source of this information. VW spokesman Christoph Adomat said that it was examining the issue.

VW Group considers the Chinese market to be the key for it to achieve its target of beating General Motors and Toyota and taking the title of the world's biggest automaker by 2018. Earlier this month, VW said that Group sales in the automaker's largest single market increased by 19.6% to 2.26 million through October. Volkswagen, which builds Jetta and Audi A6L sedans with FAW, has promised to invest 9.8 billion euros ($12.7 billion) in China through 2015.

Volkswagen’s latest offering, the Jetta, is a vehicle that has a completely new design. The way it manages to show its fully-galvanized body is proof of this. This new Jetta is more athletic and larger than the previous versions. It is also independent and if you ask how, the easiest example would be to look at the components of the body. While the past versions had some similarities, in terms of technology, with the Golf, that no longer is true.

The new Jetta is a distinct vehicle much like the Tiguan or the Passat CC. On the front end, the windshield is inclined in a way much like a coupe. The design though of this area is mainly defined by the horizontal lines. The radiator grille is in high-gloss black and it is combined with the trapezoidal headlights to form a single stylistic unit. Meanwhile the dual reflector headlights are divided into two areas through what is known as a masking blade.

The lower section is narrower and this iswhere one can see the indicator lights and the daytime running lights. The upper section is larger and has the main beam lights and the low beam lights. The new Jetta has overall length of 4.63 m (182.7 in.), making it longer by 8 cm (3.15 in) compared to the outgoing model though it is a bit shorter than the European version which measures 4.64 m.

Width meanwhile is 1.78 m (70.1 in.) and height at 1.45 m (57.1 in.). An interesting thing about the exterior is how the dimensions are able to interact and thus results in a strong ratio of proportions. In conjunction, using the design language of the brand helped sharpened the Jetta’s style. Because of this, the lines are made clearer and more precise with the surfaces becoming muscular and sportier.

Overall, the look gives the new Jetta a more dominant style and with this allows VW to put itself in a higher vehicle segment. The Jetta is not just about design but safety as well. In fact, during crash testing conducted by U.S.-based IIHS, the previous Jetta was considered as a “Top Safety Pick.” In addition to optimizing crash safety for occupants, the Jetta also enhanced pedestrian safety features. Through this latest model, VW is expected to once again set new standards when it comes to quality.

Topics: vw, joint venture

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