Overview

FAW-Volkswagen Automobile Co., Ltd. is a passenger-car manufacturing joint venture formed by China FAW Group and Volkswagen Group. The company was formally established on 6 February 1991 after the partners signed an agreement in Beijing covering an initial annual production capacity of 150,000 vehicles. Production began later that year with the Volkswagen Jetta, and the company officially commenced business in September 1992. The venture developed from earlier cooperation between FAW and Audi. On 13 August 1988, Audi entered into an arrangement with FAW to produce the Audi 100 for the Chinese market, initially using imported components. In 1995, FAW, Volkswagen, and Audi agreed to integrate Audi vehicles into the joint venture's product range and revised the ownership structure to 60% FAW, 30% Volkswagen, and 10% Audi. This gave FAW-Volkswagen a multi-brand position covering both Volkswagen mass-market vehicles and Audi premium vehicles. Its early manufacturing base was established in Changchun, Jilin Province. The first plant incorporated equipment from Volkswagen's former Westmoreland facility in the United States and included body, paint, assembly, engine, and transmission operations. A second vehicle plant began operating in December 2004. The company subsequently expanded its production footprint with a plant in Chengdu, Sichuan Province, and a further facility in Foshan, Guangdong Province, was described in the reference material as under construction. The company's production systems have supported vehicles based on several Volkswagen Group platforms, including PQ34, PQ35, and PQ46. The Volkswagen Jetta was central to the company's early development. A Jetta-based vehicle became the first car in China's A-class market to offer ABS in 1998, and the Jetta became the first mass-produced passenger car in China available with a diesel engine in 2002. FAW-Volkswagen also manufactured models such as the Bora and Golf, while its Audi operations expanded the range toward premium sedans and other passenger vehicles. By July 1996, the company reported annual capability of 150,000 cars, 270,000 engines, and 180,000 gearboxes. Its one-millionth vehicle, a Bora A4, was completed in January 2004, and its three-millionth vehicle, a Golf A6, was completed in August 2009. In 1997, FAW-Volkswagen Sales Company Ltd. was established as a 50–50 venture between FAW-Volkswagen and FAW Group. The sales structure was subsequently adjusted, and by 2002 FAW-Volkswagen had regained a majority interest. The company also operates within the wider Volkswagen Group China network and has maintained a large Chinese sales and service presence. FAW-Volkswagen introduced its own domestic marque, Kaili, in 2011 in response to Chinese industrial policy encouraging foreign manufacturers to develop local brands with Chinese partners. In 2019, it launched the Jetta brand as a distinct marque, initially presenting the Jetta VA3, VS5, and VS7. These vehicles were assembled at the Chengdu plant; the VA3 was derived from the China-market Volkswagen Jetta, while the SUV models were based on SEAT products. In 2014, FAW and Volkswagen agreed to extend their cooperation through 2041. The company therefore combines local manufacturing and distribution in China with Volkswagen Group technologies, platforms, powertrains, and global marques.

History

FAW-Volkswagen grew out of the gradual establishment of Volkswagen Group and FAW manufacturing cooperation in China. The first significant step was Audi's 1988 agreement with FAW to produce the Audi 100 for the Chinese market. The vehicles were initially assembled from parts imported from Germany, but the arrangement created industrial and commercial foundations for a larger local manufacturing venture. On 20 November 1990, FAW and Volkswagen signed the formal contract for a joint venture with planned annual capacity of 150,000 vehicles. The agreement was signed in Beijing by FAW president Geng Zhaojie and Volkswagen chief executive Carl Hahn. FAW-Volkswagen was founded on 6 February 1991, and the first Volkswagen Jetta Mk2 left the production line on 5 December of that year. The company began business officially on 1 September 1992. The first 10,000 vehicles were completed by February 1993. The original production complex was built in Changchun. Its body, paint, and assembly facilities included equipment transferred from Volkswagen's closed Westmoreland plant in the United States. Manufacturing capabilities expanded during the 1990s. In 1995, FAW, Volkswagen, and Audi agreed to bring Audi into the joint venture's product line and revised the equity arrangement to 60% FAW, 30% Volkswagen, and 10% Audi. The first locally produced Audi 200 was completed in May 1996, while engine production began in July that year. By that point, the company stated that it could produce 150,000 vehicles, 270,000 engines, and 180,000 gearboxes annually. FAW-Volkswagen's sales organization was reorganized in 1997 through the creation of FAW-Volkswagen Sales Company Ltd., initially owned equally by FAW-Volkswagen and FAW Group. This arrangement reflected the regulatory and governance environment surrounding foreign automotive investment in China. FAW-Volkswagen later became the majority owner of the sales company. Product development during this period continued to focus on the Volkswagen Jetta and other locally produced passenger cars. The Jetta King introduced ABS to China's A-class market in 1998, and a diesel Jetta became the first mass-production passenger car in China offered with a diesel engine in 2002. Jetta vehicles also participated in Chinese rally events during the late 1990s and early 2000s. The company passed major production milestones in the 2000s. A Bora A4 became the one-millionth vehicle on 7 January 2004. The second vehicle plant began operating on 7 December 2004, increasing manufacturing capacity and geographic reach. On 4 August 2009, a Golf A6 became the three-millionth vehicle produced at the second plant. By July 2009, reported year-on-year production had exceeded 513,000 units. Audi became an increasingly important part of the venture's commercial scope. By 2010, FAW-Volkswagen had sold more than one million Audi vehicles in China when imported units were included. The company marked the occasion with the installation of Gerry Judah's sculpture “Ode to Audi” at its entrance. In 2011, FAW-Volkswagen marked its twentieth anniversary and reported its one-millionth vehicle for that anniversary period, a Magotan B7L. The company later expanded beyond its traditional Volkswagen and Audi structure. In May 2011, it disclosed the Kaili brand in response to Chinese policy encouraging joint ventures to develop domestic marques. In 2014, FAW and Volkswagen agreed to continue their partnership until 2041. On 26 March 2019, FAW-Volkswagen launched the Jetta brand with the VA3, VS5, and VS7. These vehicles were assembled at Chengdu, with the VA3 derived from the China-market Volkswagen Jetta and the SUV models derived from SEAT designs. The reference material also reports exports of FAW-Volkswagen-produced vehicles to the Middle East beginning in 2025.

2025
Exports to the Middle East are reported
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The reference material reports that Volkswagen began exporting FAW-Volkswagen-produced models from China to Middle Eastern markets.
2019
Jetta becomes a separate marque
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
FAW-Volkswagen launched the Jetta brand with the VA3, VS5, and VS7 models, all assembled at Chengdu.
2014
Partnership is extended through 2041
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
FAW and Volkswagen announced an agreement extending their joint venture cooperation for a further 25 years.
2011
Kaili brand is disclosed and twentieth anniversary is marked
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
FAW-Volkswagen revealed the Kaili marque in May and marked its twentieth anniversary in August with a Magotan B7L milestone vehicle.
2009
Three-millionth vehicle is completed
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
A Golf A6 became the three-millionth vehicle produced at the second plant on 4 August.
2004
One-millionth vehicle and second plant
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
A Bora A4 became the one-millionth vehicle in January, and the second vehicle plant began operating in December.
2002
Diesel passenger-car offering reaches the Chinese mass market
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The Jetta became the first mass-production passenger car in China to be offered with a diesel engine.
1998
Jetta King introduces ABS in the Chinese A-class market
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The Jetta King became the first car identified in the reference material as offering ABS in China's A-class market.
1996
Audi production and powertrain manufacturing expand
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The first Audi 200 was completed in May, and the engine plant began operating in July.
1995
Audi is integrated into the product line
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
FAW, Volkswagen, and Audi agreed to integrate Audi products into the joint venture and established a 60% FAW, 30% Volkswagen, and 10% Audi equity structure.
1993
First 10,000 vehicles completed
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The company completed its 10,000th vehicle on 7 February.
1991
FAW-Volkswagen is founded and begins Jetta production
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
The joint venture was founded on 6 February, and the first Volkswagen Jetta Mk2 rolled off the line on 5 December.
1990
Joint-venture production contract is signed
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
FAW and Volkswagen signed a contract for a joint venture with planned annual capacity of 150,000 vehicles.
1988
Audi and FAW establish an initial production arrangement
[1]FAW-Volkswagen - Wikipediaen.wikipedia.org
Audi signed an agreement with FAW to produce the Audi 100 for China, initially using imported German components.

Products and positioning

A broad-market Chinese automotive joint venture spanning mainstream Volkswagen vehicles, premium Audi vehicles, and the independently marketed Jetta marque.

Passenger cars and SUVs · 1991
Volkswagen vehicles
Volkswagen-branded vehicles form one of FAW-Volkswagen's core product families. The company's history includes locally produced Jetta, Bora, Golf, and Magotan vehicles, supported by Volkswagen Group platforms and powertrains. The range has served China's mainstream passenger-vehicle market.
Premium passenger cars · 1995
Audi vehicles
Audi products were incorporated into the joint venture's product line during the 1990s following earlier FAW-Audi cooperation. FAW-Volkswagen manufactures Audi vehicles for the Chinese market and has also been associated with imported Audi sales. Audi gives the venture a premium-market presence alongside its mainstream Volkswagen operations.
Passenger cars and SUVs · 2019
Jetta brand
The Jetta marque was introduced as a distinct brand in 2019. Its initial announced products were the VA3 sedan and the VS5 and VS7 sport utility vehicles. The VA3 was derived from the China-market Volkswagen Jetta, while the SUV models were based on SEAT products. Initial production was assigned to Chengdu.
Powertrain components · 1996
Automotive engines and transmissions
FAW-Volkswagen has operated engine and transmission manufacturing alongside vehicle assembly. The reference material identifies EA390, EA888, and EA211 engines, as well as MQ200 manual, AQ160 and AQ250 automatic, and DQ-series dual-clutch transmissions among the company's powertrain range.

Controversies

2022
FAW-Volkswagen announced a recall of Audi vehicles
A recall notice published by China's State Administration for Market Regulation stated that FAW-Volkswagen would recall certain imported and domestically produced Audi vehicles starting February 28, 2022. The recall included 453,791 domestically produced Audi Q5L vehicles. According to the notice, the stated defect could allow liquid to short the gateway control module and cause a loss of driving power.
Source
2021
FAW-Volkswagen recalls vehicles over fuel-pump hazard
FAW-Volkswagen announced a recall of 200,114 vehicles, including certain Sagitar, T-Roc, Jetta VS5 and Jetta VS7 models. According to the announcement, burrs in some fuel-pump components could impair the pump's operation and potentially cause vehicles to fail to start or stall. The stated remedy is free replacement of the improved fuel pump. The recall covers the specified models produced in the affected period.
Source
2021
FAW-Volkswagen announces recall of vehicles over fuel-pump defect risk
FAW-Volkswagen filed a recall plan and said it would recall affected vehicles starting August 6, 2021. The article says burrs left on some fuel-pump lower housings due to a supplier manufacturing cause could impair pump operation, potentially preventing vehicles from starting or causing them to stall while driving.
Source
2021
FAW-Volkswagen announces OPF system upgrades for some Tanyue models
FAW-Volkswagen announced free software and hardware upgrades, including added heat insulation, for China VI B Tanyue 330 TSI and Tanyue X 330 TSI vehicles produced from April 3, 2020, through September 26, 2021. The upgrades address reported OPF system faults and optimize the system's control strategy.
Source
2021
Recall of certain imported Audi Q7 vehicles
FAW-Volkswagen Automotive Co., Ltd. announced a recall in China of three imported 2021-model-year Audi Q7 vehicles produced from July 31 to August 6, 2020. A casting defect could leave the front side airbag collision sensor housing without its locking mechanism, potentially affecting airbag and seat-belt pretensioner protection. The company said authorized Audi dealers would inspect the sensors and replace any with missing clips free of charge.
Source
2020
Volkswagen and Audi vehicle recall announced
Volkswagen (China) Sales Co. and FAW-Volkswagen announced a recall plan covering 600 Touareg vehicles and 620 Audi Q8 and A8L vehicles, scheduled to begin on July 1, 2020. According to the announcement, a supplier manufacturing deviation may cause transmission-oil leakage and related vehicle safety risks. Authorized dealers will inspect the affected oil pipes and replace them where needed.
Source
2019
Volkswagen-related companies announce recall of 159,167 vehicles in China
Volkswagen (China) Sales Co., SAIC Volkswagen and FAW-Volkswagen announced a recall covering 159,167 vehicles. The affected vehicles may have airbag-control-unit electronic-component faults that could cause airbags and seat-belt pretensioners to deploy unintentionally or become disabled. The companies said they would update the software free of charge and replace affected control units free of charge when specified fault conditions are confirmed.
Source
2019
FAW-Volkswagen recalls Passat and CC vehicles
FAW-Volkswagen filed a recall covering 53,054 Passat and CC vehicles and 7,550 vehicles with affected after-sales parts. The stated safety concern was that electronic components in the airbag control unit could fail, potentially causing airbags and seat-belt pretensioners to deploy unexpectedly or be disabled.
Source
2014
Sagitar rear axle fracture controversy and large-scale recall
In 2014, safety issues with the rear axle of FAW-Volkswagen Sagitar sparked complaints and a recall. In 2015, the General Administration of Quality Supervision, Inspection and Quarantine announced the defect investigation results, determining that fractures of the relevant rear axle trailing arms constituted a defect. The incident is limited to vehicles within the recall scope that used the relevant rear axle structure and does not involve all Volkswagen models.
Source

Marketing campaigns

2011Twentieth-anniversary and Audi million-vehicle commemorations
China
FAW-Volkswagen marked its twentieth anniversary and celebrated the scale of Audi sales in China, including the installation of Gerry Judah's “Ode to Audi” sculpture at the company entrance.
Outcome. The commemorations emphasized production scale, longevity, and Audi's importance within the joint venture.
Source
1999Jetta rally participation
China
The Jetta was registered in FIA Group N and entered Chinese rally events with FRD Sport and Qingyang Racing during the late 1990s and early 2000s.
Outcome. The activity associated the Jetta with domestic motorsport and product durability.
Source

Brand decisions

2019
Launch the Jetta brandProduct launch
Background
FAW-Volkswagen sought to use the established Jetta name in a broader brand structure rather than treating it only as a Volkswagen model line.
Action taken
The company introduced Jetta as a separate marque with the VA3, VS5, and VS7.
Aftermath
The initial Jetta range extended the venture into a distinct value-oriented brand covering a sedan and two SUVs.
Source
2014
Extend the FAW-Volkswagen partnershipStrategy
Background
FAW and Volkswagen had operated the joint venture since the early 1990s and sought to continue their long-term cooperation.
Action taken
The partners announced an extension of their cooperation through 2041.
Aftermath
The agreement provided a long-term framework for continued manufacturing and sales operations in China.
Source
2011
Develop the Kaili domestic marqueStrategy
Background
Chinese policy encouraged foreign automotive manufacturers to develop domestic brands with their local partners.
Action taken
FAW-Volkswagen revealed the Kaili brand.
Aftermath
The initiative represented an attempt to broaden the joint venture beyond its Volkswagen and Audi marques; the available reference does not establish the brand's subsequent commercial performance.
Source
1995
Integrate Audi into FAW-VolkswagenStrategy
Background
FAW and Volkswagen were developing a broader Chinese passenger-car operation, while Audi already had a production relationship with FAW.
Action taken
The partners agreed to add Audi vehicles to the joint venture's product line and revised the equity structure to 60% FAW, 30% Volkswagen, and 10% Audi.
Aftermath
FAW-Volkswagen became a multi-brand operation serving both mainstream and premium segments.
Source

Recent events

2026.10.28
Reported2026.10.28
FAW-Volkswagen unveils ID. AURA L5[15]一汽-大众发布ID. AURA L5auto.sina.com.cn
FAW-Volkswagen unveiled the ID. AURA L5 at Volkswagen Group China's technology day. The article described it as the first all-electric sedan in the ID. AURA series.
2022.01.28
iQIYI partners with FAW-Volkswagen for in-car app distribution[16]爱奇艺与一汽-大众合作推出车机应用下载服务itbear.com.cn
iQIYI announced a partnership with FAW-Volkswagen to offer downloads of the app in the ID. family electric vehicles' in-car app store starting January 28.
2022.01.27
Reported2022.01.29
FAW-Volkswagen announced a recall of Audi vehicles[10]FAW-Volkswagen announced a recall of Audi vehiclesfinance.sina.com.cn
A recall notice published by China’s State Administration for Market Regulation said FAW-Volkswagen would recall certain imported and domestically produced Audi vehicles starting February 28, 2022. The recall included 453,791 domestically produced Audi Q5L vehicles; the stated defect could allow liquid to short the gateway control module and cause loss of driving power.
2022.01.10
Reported2022.01.14
Volkswagen closes two Tianjin factories amid COVID-19 outbreak[17]疫情期间大众关闭天津两家工厂epochtimes.com
Volkswagen China said that a FAW-Volkswagen joint-venture factory and a Volkswagen automatic-transmission parts factory in Tianjin had been closed since January 10 because of the recent COVID-19 outbreak. The company said both factories had tested all employees twice that week and were awaiting results.
2021.10.26
FAW-Volkswagen announces OPF system upgrades for some Tanyue models[11]FAW-Volkswagen announces OPF system upgrades for some Tanyue modelsauto.cnfol.com
FAW-Volkswagen announced free software and hardware upgrades, including added heat insulation, for China VI B Tanyue 330 TSI and Tanyue X 330 TSI vehicles produced from April 3, 2020, through September 26, 2021. The upgrades address reported OPF system faults and optimize the system's control strategy.
2021.09.23
FAW-Volkswagen bonded warehousing project enters Changchun zone[18]一汽-大众保税仓储项目入驻长春综保区jl.chinanews.com.cn
The FAW-Volkswagen imported-engine and motor bonded warehousing project moved goods into the Changchun Xinglong Comprehensive Bonded Zone on the 23rd, marking the project's establishment there.
Unconfirmed
FAW-Volkswagen announces recall of vehicles over fuel-pump defect risk[9]FAW-Volkswagen announces recall of vehicles over fuel-pump defect riskdonews.com
FAW-Volkswagen filed a recall plan and said it would recall affected vehicles starting August 6, 2021. The article says burrs left on some fuel-pump lower housings due to a supplier manufacturing cause could impair pump operation, potentially preventing vehicles from starting or causing them to stall while driving.
2021.07.09
FAW-Volkswagen recalls vehicles over fuel-pump hazard[8]FAW-Volkswagen recalls vehicles over fuel-pump hazardchinaz.com
FAW-Volkswagen announced a recall of 200,114 vehicles, including certain Sagitar, T-Roc, Jetta VS5 and Jetta VS7 models, because burrs in some fuel-pump components could impair operation and potentially cause vehicles to fail to start or stall. The stated remedy is free replacement of the improved fuel pump.
2021.02.23
Reported2021.02.23
OPPO launches The Flash Initiative with technology licensing partners[19]OPPO与技术授权合作伙伴推出Flash Initiativeprnewswire.com
OPPO launched The Flash Initiative, through which organizations license OPPO's VOOC flash-charging technology. OPPO identified FAW-Volkswagen, Anker and NXP Semiconductors as new partners.
2021.01.22
Recall of certain imported Audi Q7 vehicles[12]Recall of certain imported Audi Q7 vehiclesauto.sina.com.cn
FAW-Volkswagen Automotive Co., Ltd. announced a recall in China of three imported 2021-model-year Audi Q7 vehicles produced from July 31 to August 6, 2020. A casting defect could leave the front side airbag collision sensor housing without its locking mechanism, potentially affecting airbag and seat-belt pretensioner protection. The company said authorized Audi dealers would inspect the sensors and replace any with missing clips free of charge.