Volkswagen to invest $1.1 billion in China R&D hub for electric vehicles

By David Sachs

Volkswagen AG on Tuesday said it plans to open a research, development and procurement hub for vehicle electrification and automation in China next year with an investment of 1 billion euros ($1.09 billion).

The German car company said the investment will speed up development times for new products and technologies related to electrification and automation by around 30% through procuring materials closer to where research and development occurs. In turn, Volkswagen hopes the company, called 100%TechCo, will help deliver cars to market more quickly, it said. It will be headquartered in the southern city of Hefei and tailored to Chinese regulations for electric vehicles, Volkswagen said.

"By consistently bundling development and procurement capacities as well as integrating local suppliers at an early stage, we will significantly accelerate our development pace," said Ralf Brandstaetter, a Volkswagen board member for China.

Write to David Sachs at david.sachs@wsj.com

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04-18-23 0935ET

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