German manufacturers are strengthening their positions in China

China is the largest trading partner of Germany in Asia, and Germany, the largest trading partner of China in Europe. In the automobile industry, Germany signed partnership agreements very early on (in the 80s) with Chinese manufacturers. Today, German carmakers (Volkswagen, BMW and Daimler) occupy 20.8% of the world's largest market, ahead of American carmakers (19.8%), Japanese (16.6%) and Korean (8.8%).


Chinese manufacturers hold 30% of the Chinese market, and this share has been stable for several years. In this context, Volkswagen, BMW and Daimler are to retain their strong position in this market, which on average increases by 10% each year.


Daimler recently bought 12% stake in BAIC and the two partners are going to increase the production capacity of their  Beijing plants.


Volkswagen and its partner SAIC are going to extend their cooperation to fuel cells and hybrid vehicles. Volkswagen is going to build a new plant with FAW another of its partners in order to increase their production capacities. Volkswagen has set a goal to acquire the necessary installations in order to produce more than 4 million vehicles a year in China by 2018. The group has produced and sold more than 3 million vehicles in the country in 2013.


In addition, an agreement has been signed in order strengthen the links between BMW and its partner Brilliance.

 

14-18-9  

 
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