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More efficient China-made cars

By Gong Zhengzheng (China Daily)
Updated: 2007-03-31 10:02

DALIAN: German carmaker Volkswagen Group announced on Friday it plans to lower the fuel consumption and exhaust emission of its China-made cars by more than 20 percent by 2010 with the introduction of its latest-generation engines and gearboxes.

Under a plan labeled "China Powertrain Strategy", the group will spend $600 million on the manufacture of its most advanced engines and gearboxes with local partners to equip all of its new cars built in the world's second-biggest vehicle market, said Winfried Vahland, Volkswagen's executive vice-president and China chief.

Dalian Mayor Xia Deren (second from right) and First Automotive Works Corp (FAW) President Zhu Yanfeng (second from left) check a car engine at the production line of Volkswagen's joint venture in Dalian with FAW. The joint venture on Friday started production of its 1.8-liter turbo FSI, four-cylinder, four-valve engine.[newsphoto]

Vahland said Volkswagen's plan is in response to China's goal to cutenergyconsumption per unit ofgross domestic productin 2010 from 2005, which was announced by Premier Wen Jiabao at the beginning of March.

"Volkswagen Group China takes its responsibility as a market leader to guarantee growth in compliance with environmental protection and ahead of government regulations," he said.

As a first step in its plan, Volkswagen on Friday started production of its 1.8-liter turbo FSI, four-cylinder, four-valve engine in a joint venture in Dalian with the FirstAutomotive Works Corp (FAW), China's No 2 vehicle group.

The engine produces a maximum power of 118KW/5,000-6,200rpm and offers a top torque of 250Nm/1,500-4,200rpm. It will be fitted in two models to be introduced in China - the Magotan mid-sized sedan and the Octavia compact sedan.

The Magotan will be manufactured in June at Volkswagen's car venture with FAW in the northeastern city of Changchun. The Octavia will be launched in May at the German group's other car venture inShanghaiwith SAIC Motor Co Ltd, China's top automaker.

The engine venture in Dalian, in which Volkswagen and FAW hold 60 and 40 percent stakes, will have an annual production capacity of 300,000 units by 2011 with a total investment of 1.5 billion yuan. The plant will also assemble a 2.0-liter engine in the future. The venutre's engines will also supply Volkswagen's markets abroad.