Volkswagen is extending its partnership with its Chinese joint venture partner First Automotive Works for further 25 years.
Apart from the partnership extension, the companies are planning to invest in the Shanghai Volkswagen (SVW) proving ground in Xinjiang province.
The extended cooperation companies will facilitate expansion of research and development activities in China, especially the development of alternative drive technologies.
Volkswagen and FAW are also planning to build two new plants in Qingdao and Tianjin.
Volkswagen management board member Prof. Dr. Martin Winterkorn said: "Together with its strong partners Volkswagen is focusing on innovation, eco-friendly technologies and excellently trained employees in China.
"Today's agreements pave the way for the sustainable development of China's automotive industry and for the Volkswagen Group and its joint ventures to benefit from growth."
