Key facts
- Volkswagen will globalize China-developed technology, including its Compact Main Platform with China Electronic Architecture.
- The technology will be integrated into next-generation models targeting markets in South America, Africa, and Southeast Asia.
- Rollout in South America is planned by the end of the decade.
- Volkswagen also plans to increase exports of China-built Volkswagen and Jetta cars to South America and Africa.
- The VEGA package, featuring 850-volt fast charging and Level 3 autonomous-driving readiness, is slated for a 2027 launch.
Volkswagen is shifting its strategy to globalize technologies developed in China, aiming to enhance its international competitiveness by leveraging China as an innovation hub. The German automaker announced that its Compact Main Platform with the China Electronic Architecture, developed in Hefei in partnership with Chinese firms, will be featured in its next-generation models for markets in South America, Africa, and Southeast Asia. This move signals a departure from its previous "In China, for China" localization strategy, as the company faces challenges in its China sales and seeks to transform its operations into a cost-efficient development and export base. Volkswagen also plans to increase exports of China-built cars to these regions. The company is also introducing the VEGA package, offering 850-volt fast charging and Level 3 autonomous-driving readiness, by 2027. This strategy aligns with other legacy automakers globalizing their China-developed technologies to compete with rising Chinese rivals in international markets.