Volkswagen’s $3.5b Gamble: Can It Win Back Share in the Competitive Chinese Market?

HEFEI, China (AP) — Volkswagen is making a big move in China by investing $3.5 billion in a research and development center in the low-key central China city of Hefei, west of Shanghai. This marks a shift from its previous strategy of making cars in China that were developed overseas. The company is now creating vehicles specifically for Chinese drivers. Audi, part of Volkswagen, has already launched a new brand in China. The company hopes to catch up with local competitors like BYD and Geely. The Chinese market has changed dramatically, with electric vehicles now making up about half of new car sales. Volkswagen is also teaming up with Chinese EV maker Xpeng to speed up development.

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