In a new era of profound restructuring of the global economic landscape and accelerated industrial transformation, China is embracing a new round of development opportunities with a higher level of institutional opening-up. As a pillar of the national economy, the transformation and upgrading of the automotive industry is not only crucial to the high-quality development of the manufacturing industry but also a crucial step in implementing the new "dual circulation" development model.
On August 28, China FAW, Volkswagen Group (China) and the Chengdu Economic and Technological Development Zone Management Committee jointly signed the "Jetta Business Development Cooperation Agreement", which is a vivid footnote to my country's continued promotion of high-level opening up to the outside world, and demonstrates our country's firm determination to promote industrial upgrading through deepening international production capacity cooperation in the process of building a new development pattern.
Breaking through the traditional joint venture model
Traditional joint ventures are often limited to technology introduction and market development. This collaboration transcends these operational constraints and, through government-enterprise collaboration, achieves resource integration and complementary advantages. As a demonstration base for my country's new industrialized automotive industry, the Chengdu Economic and Technological Development Zone will provide comprehensive policy support and service guarantees for the Jetta brand, striving to build a high-quality, independently operated industrial ecosystem.
This collaboration fully leverages the strengths of all parties. Germany brings advanced technology and a global perspective, China provides localized R&D capabilities and market insights, and local governments offer policy guidance and resource integration. This multi-party collaboration not only accelerates technology transfer and product iteration, but also achieves deep integration and value enhancement across the industry chain.
Five new models in three years , the first to feature self-developed electronic and electrical architecture
According to the agreement, the Jetta brand will launch five new models by 2028, four of which will be new energy vehicles, with the first scheduled to be launched in 2026. This product plan demonstrates the brand's continued technological strength and innovative momentum in the smart mobility sector. Regarding its technological approach, the first Jetta brand pure electric model will be equipped with FAW-Volkswagen's independently developed SOA electronic and electrical architecture, customized based on the CMP platform technology.
It's worth noting that the Jetta brand will adopt an open and collaborative technology approach, offering an optional ADAS integrated driver assistance solution developed by CoreCheng. This powerful partnership not only creates a superior product experience for customers but also demonstrates the importance of future partnerships. As the project progresses, we expect more technology partners to join this innovative platform and jointly promote the development of intelligent connected technology.
Localized independent operations strengthen autonomy
The new Jetta brand company will fully integrate existing resources, leveraging China's local R&D and mature supply chain system to achieve greater decision-making autonomy and operational flexibility. This localized, independent operating model will empower the Jetta brand with greater autonomy, bringing R&D, production, and sales closer to the Chinese market and enabling rapid response to changing market demands.
At the signing ceremony, Qiu Xiandong, Party Secretary and Chairman of FAW Group Corporation, stated, "This signing is a vivid example of FAW Group actively responding to China's high-level opening-up policy, deeply implementing the Belt and Road Initiative, and the Western Development Strategy. FAW-Volkswagen will fully integrate the strengths of both China and Germany to enhance localized operational efficiency, strengthen its in-house R&D capabilities, and establish a new technological hub for the joint venture. This will contribute to the high-quality transformation and development of Sichuan's automotive industry and inject new momentum into the Jetta brand's 'deep roots in China and global reach.'" The development of this localized R&D capability will enable the Jetta brand to deeply participate in localized product definition and development processes, optimizing them specifically for the Chinese market. As an independent operation, the Jetta brand will be able to more swiftly respond to Chinese market demands, implement localized innovations and improvements, and provide consumers with products and services that better meet their needs.
Hundred-billion-yuan industrial chain and employment-driven effect
As a key automotive industry base in my country, the Chengdu Economic and Technological Development Zone has formed a complete industrial ecosystem. It is home to 12 complete vehicle manufacturers, including FAW-Volkswagen and Toyota, and boasts a production platform with a capacity of 2.3 million vehicles. Over 300 key component manufacturers have settled in the zone, making it one of China's top ten automotive production bases.
Leveraging its integrated administrative structure, the Economic and Technological Development Zone has cultivated a talent pool of 1.3776 million permanent residents, 35% of whom are professional and technical personnel. Public data indicates that 53 new high-tech enterprises were added in 2024, bringing the total to 452, driving the number of R&D personnel to over 36,000. In the automotive manufacturing sector, companies like FAW-Volkswagen and Lynk & Co. have attracted 12,000 automotive engineers, forming the largest automotive talent cluster in western China.
The Jetta brand's presence in Chengdu will further boost economic growth. According to the agreement, the Jetta brand will contribute to building a multi-billion-yuan automotive industry ecosystem, encompassing R&D innovation, manufacturing, supply chain management, and sales and service. This industry chain will leverage its driving force and is expected to create tens of thousands of local jobs.
Regarding talent recruitment, according to information on the government website, the Economic Development Zone offers a 5% salary bonus to senior managers with annual salaries exceeding 400,000 yuan. Newly recruited masters and doctorates receive subsidies of 30,000 yuan and 72,000 yuan, respectively. These policies help the Jetta brand attract and retain high-end talent. At the same time, there is also a strong demand for basic positions such as production line operators. Recent job postings indicate monthly salaries for automotive operators can reach 6,000-7,000 yuan, while specialized technical positions such as powertrain product engineers can earn up to 30,000 yuan.
Deeply rooted in the local market and radiating overseas
This collaboration has significant demonstration significance for the Chinese automotive industry. For the industry, the Jetta model offers a new approach to localized operations for joint venture brands, leveraging both the technological expertise of foreign-invested enterprises and the resource integration capabilities of local governments, achieving mutual benefit and a win-win situation.
To date, Jetta has accumulated over 5 million users in China, and its reputation for durability is deeply rooted in the nation. For consumers, the Jetta brand's localized and independent operation means more tailored products and superior service.
Combined with more localized innovative improvements and the planned launch of four new energy vehicle models, it will provide consumers with new options in the entry-level new energy vehicle market.
Looking ahead, the Jetta brand's development vision extends beyond the domestic market. While firmly established in the domestic market, the brand will confidently expand its reach overseas, leveraging Chengdu International Railway Port and leveraging local industrial advantages to diversify its overseas presence.
The strategic vision of "deepening local roots and radiating overseas" is in line with the overall development trend of China's automobile industry, and will also inject new impetus into Chengdu's construction of an important node city along the "Belt and Road".
