2015-November-20 Source: Newsgd.com
The International Consultative Conference on the Future Economic Development of Guangdong Province 2015 (ICCFED 2015) is on the stage in Dong Fang Hotel. Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft, President and CEO of Volkswagen Group China, accepted an exclusive interview with Newsgd.com.
Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft, President and CEO of Volkswagen Group China. [file photo]
Newsgd.com: Guangdong is a major manufacturing province — in what areas has Volkswagen worked with the government here so far? Why did Volkswagen choose to build a plant in Foshan, Guangdong?
Dr. Heizmann: We chose to build our plant in Foshan because:
- Great support from Guangdong government when building Foshan plant.
- Cooperation agreement in place with the Guangdong government covering areas of research, new energy vehicles and green production.
- With employees and Guangdong government, in Foshan jointly worked to enhance onsite waste management system (potential of up to 90% recycling).
- Foshan: important location for economic and social growth (ideally located, favorable conditions and established infrastructure).
- “Go South” strategy: developing footprints in market to be closer to customers and even better address their needs.
Newsgd.com: We understand that the Foshan FAW-VW plant is your largest investment in Guangdong. Before this project was initiated, what considerations led you to choose Guangdong? For Volkswagen's China strategy, what position does Guangdong and the South China region occupy?
Dr. Heizmann: First, Guangdong is China’s economically most developed province, and its standard of living is among the highest. Guangdong has a vast auto market: nationally, it occupies a top position – one that influences the entire southern region. It is easy to see the importance of the South China market for Volkswagen.
Second, following the Open Door Policy, the auto manufacturing industry in Guangdong, along with the development of its manufacturing base, has grown by leaps and bounds and provided Volkswagen with an excellent investment environment.
We have excellent communication with the Guangdong government and Foshan city government, and a mutually beneficial development vision.
As the nation’s leading automaker, Volkswagen wants to continue to develop the South China market, increasing its influence here, and fully take advantage of the growth momentum here.
These are the reasons we chose Guangdong – looking back it has proven to be a wise decision.
Newsgd.com:
You have said that Foshan is a green factory, and the most advanced Volkswagen China production facility, which is obviously consistent with Guangdong's "industrial upgrading strategy" of recent years. With Germany being the world's most advanced manufacturing power and Volkswagen the leader there, are you able to offer advice for Guangdong's industrial transformation and upgrading?
Dr. Heizmann: We believe that green production is extremely important for Guangdong in order to effect an intelligent manufacturing transformation. To this end, we have two core suggestions:
First, strengthen the policies and regulations surrounding lowering energy consumption and water usage, CO2 emissions and VOC emissions and increasing recycling of resources, creating standardized evaluation criteria for green production;
Second, implement measures in the field of waste prevention, increasing recycling to the greatest degree possible, to reduce the amount of waste currently being buried.
Newsgd.com: What makes Guangdong memorable to you? What is your impression of Guangdong?
Dr. Heizmann: I come to Guangdong Province every year when Volkswagen Group is present at Auto Guangzhou – one of most important auto shows in China.
Coming here is always a nice change as the South of China offers so many regional specialties like the delicious food and the regional vegetation, plus the people are also really friendly here.
For sure the economic importance of the region to China also makes it very interesting to talk with the provincial government.
Newsgd.com: If you had to describe Guangdong province in three words, what would they be?
Dr. Heizmann: Gateway, vibrant and dynamic! Guangdong is a gateway to China, the society is vibrant and the economy is dynamic.
Newsgd.com: With the global development of energy conservation and emission reductions, NEVs are becoming a key focus for the major automakers. What is Volkswagen's current strategy for the development of NEVs in China? How will Volkswagen work with Chinese enterprises?
Dr. Heizmann: Volkswagen is technologically repositioning itself for the future of e-mobility; that future is BEV.
Volkswagen at the forefront of electrifying China.
Short-term: focusing on plug-in hybrids; leading NEV offensive, opening up way for high-volume BEVs
Continued localization strategy: 15 locally-produced NEVs, including key components, in China within the next 3 to 5 years.
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(By Chan)
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