This is the third time that JAC and Volkswagen have cooperated in depth, from the cooperation of charging facilities to the establishment of JAC-Volkswagen joint venture, and then to the capital increase of JAC Holdings, it has to be noted that every time on behalf of Volkswagen signing of the person, he is the Volkswagen Group Global Executive Vice President, CEO of the Yat driving intelligence (Mobility Asia) --- Su Weiming. -Su Weiming. This time, the signing of the contract between the two sides, the signatory on the spot is still him, at the same time, there are voices in the industry, said the Volkswagen and Jiangqi cooperation, can not be separated from the promotion of Su Weiming.
Who is Su? Why is he always the one who signs on behalf of Volkswagen? What companies has he signed up? What is the logic behind Volkswagen's transformation in China?
1
What is Weiming Su's role in Volkswagen China?
Weiming Su is no stranger to the industry. As Volkswagen's global executive vice president and CEO of Mobility Asia, he's a rare sight for a German company. In a survey of large German companies, only 12 percent of executives were of non-German descent, and Volkswagen was the most conservative.
Su's automotive career began at Daimler's Asia-Pacific headquarters, where he became vice president of DaimlerChrysler China shortly after the merger with Chrysler and then general manager of Beijing Jeep's sales and marketing department. In 2001, China's automobile market entered the beginning of the "blowout period", and the sedan market began to develop. Four years later, Su Weiming became Vice President of Volkswagen Group China, Vice President of FAW-Volkswagen Commercial and General Manager of the sales company, and entered the marketing field of the joint venture company until his return to Volkswagen China in 2008, during which he focused on promoting the reform of the structure of the joint venture company, personnel, and brand. After transferring back to Volkswagen China, Su Weiming focused on integrating sales channels.
By serving in China and rising several levels in a row, we can find that Volkswagen really needs such an oriental face who understands the Chinese market and is close to it. 2016, Su Weiming was formally promoted to executive vice president of Volkswagen Group, and at the same time, he was also the president of Volkswagen Group's commercial operations for Greater China and ASEAN countries, the director and executive vice president of Volkswagen Group (China), and the director and executive vice president of Volkswagen Group (China) Sales. (China) Sales Co.
In 2018, as the only Chinese executive vice president of the Volkswagen Group globally, Su Weiming took a break from the group to create the Volkswagen subsidiary Mobility Asia, which, according to the plan, is responsible for exploring a range of new businesses, including connected cars, smart mobility, infrastructure, smart driving and big data applications.
In the industry's view, Mobility Asia is the focus of Volkswagen's transformation in the Chinese market, and since then, Su Weiming has been at the helm of Volkswagen's connected car, mobility ecosystem, infrastructure ecosystem, big data, and smart driving in the Chinese market. In Volkswagen Group's view, the five sections of Mobility Asia are the foundation for building a smart car ecosystem, and Su Weiming has publicly said, "When the ecosystem matures, traditional fuel vehicles will slowly be replaced by electric vehicles."
The transformation around intelligence and electrification in the Chinese market, spearheaded by Su, can be seen as Volkswagen's choice, as well as Su's own.
2
What's different about Volkswagen's investment in Jiangqi Holdings?
It is worth noting that, before the signing of the contract with Volkswagen, Jiangqi Holdings for the Anhui State-owned Assets Supervision and Administration Commission 100%, it is because of the state-owned assets of Jiangqi Holding, and there is no precedent of foreign participation in the mixing and reform of state-owned enterprises in the country, while at the same time, Volkswagen participation in the mixing and reform of Jiangqi Holding will also have to bear the top of the "state-owned assets loss" hat. Therefore, the industry believes that the possibility of Volkswagen's shareholding in Jiangqi Holdings is not high.
Su Weiming (first from left), who signed the contract with JAC on behalf of Volkswagen China
But according to the letter of intent for the capital increase, Volkswagen China will invest in JAC to acquire 50 percent of the shares of JAC before Dec. 31, 2020, through a capital increase, though Anhui State-owned Assets Supervision and Administration Commission (SASAC) of Anhui Province will hold the other 50 percent and still control the shares of JAC. At the same time, Volkswagen China announced that it will increase its investment in JAC's JAC Volkswagen joint venture, and will hold a 75 percent stake in JAC Volkswagen after the deal is completed.
Unlike FAW-Volkswagen and SAIC-Volkswagen, Volkswagen signed a contract to cooperate with Volkswagen China, and the ultimate investor is Volkswagen (China) Investment Co. In addition, Volkswagen also plans to set up a research and development center with JAC***, with the aim of developing electric car models that meet the needs of the Chinese market, Internet of Vehicles (IoV) and automated driving technology, and developing a pure electric vehicle platform.
In comparison, FAW-Volkswagen and SAIC-Volkswagen are responsible for whole-vehicle manufacturing, sales and other work, while the increase in capital into JAC Holdings and the increase in JAC Volkswagen's stake means that Volkswagen's cooperation with JAC includes research and development, production and travel, covering the upper, middle and lower reaches of the automobile.
Volkswagen China CEO Feng Sihan admitted: "Through the acquisition of JAC, Volkswagen Group has achieved direct investment in Chinese companies in the electric vehicle industry chain, and this investment will further deepen Volkswagen Group's strategy of realizing localization and sustainable mobility in China."
3
Su Weiming has gathered all the cards of the electric ecosystem
Enterprise search data shows that, up to now, Volkswagen (China) Investment Co Ltd*** counted 21 foreign investments, including Easy Hand Car, Enovation, YiDui Intelligence, Shanghai Orange Zong, KaimeiShi and other science and technology enterprises, and the project covers the Internet of vehicles, intelligent travel, infrastructure, intelligent driving and big data application. According to the investment plan, Guoxuan Gaoke will be added in the future, which means that Volkswagen China has formed a three-dimensional ecosystem centered on new energy vehicles.
Kaimax New Energy Technology Launching Ceremony (fourth from the left)
In the industry's view, when the enterprises of each important link in the auto travel ecology sit together and start new explorations with a clear division of labor and cooperation, it is a new mode of exploring the auto travel field that starts to shift from a lower dimension after thinking about it at a higher latitude. From the charging pile, smart city, joint venture company of each signing, can not be ignored is Volkswagen ultra-high degree of participation, and the ecological chain of the key enterprises *** with the completion of the closed loop.
According to the future sustainable development plan released by Volkswagen China, by 2025, Volkswagen Group will produce 30 new energy vehicles in China and deliver about 1.5 million new energy vehicles to Chinese consumers. By 2050, the Volkswagen Group is committed to achieving carbon neutrality on a global scale, including the Chinese market.
It can be found that JAC Volkswagen and Guoxuan Hi-Tech are just part of Volkswagen's efforts to realize transformation in China. But it is undeniable that Volkswagen's electrification puzzle in the Chinese market is primed for completion. In each of these transformational investments, it seems that Volkswagen China has never minded whether it has absolute control or not, with Volkswagen China CEO John Fung calling the two signings "milestone achievements" in a post on a social media platform right after the signing of the two crucial deals.
This article was written by the author of Automotive Home, and does not represent the views of Automotive Home.