Volkswagen to start a Second sub-brand in China

Published on May 17, 2011 by Tycho de Feijter

Earlier we heard Volkswagen will set up a new sub-brand with FAW, called Kaili, to make electric cars for the Chinese market. But Volkswagen has two joint ventures in China, FAW-VW and Shanghai-VW. Today we heard that Volkswagen will set up a second sub-brand with Shanghai Automotive. The name is yet unknown but it will also make electric cars. This news popped up in an article from ChinaDaily on the Kaili brand.

[Quote] Wen (spokesman at Volkswagen China) said the German automaker’s partnership with SAIC will have another joint venture brand, but again declined to provide details.

According to recent Chinese-language media reports, Zhang Hailiang, managing director of Shanghai Volkswagen, said the joint venture will develop in the electric vehicle business in two ways – one under the Volkswagen Group brand and another brand by the joint venture. “We have registered the trademark for the joint venture brand and have started the research and development work,” Zhang was cited as saying. [/unquote]

Volkswagen will have: two joint ventures and two sub-brands making electric cars. The two joint ventures are already competing with each other and it loox like the subs will do the same.