What is the difference between FAW-Volkswagen and SAIC Volkswagen?
2 Answers
FAW-Volkswagen and SAIC Volkswagen are both joint ventures of Volkswagen in China, but there are many differences between them, as follows: 1. Different shareholding ratios. SAIC holds a larger proportion, accounting for 60% of the shares, while FAW Group holds 40%. 2. Different models. The models produced by these two groups are different. The models used by FAW Group are almost all original designs of Volkswagen with few modifications. On the other hand, SAIC Volkswagen has many improvements, making them more suitable for Chinese tastes. 3. Different market positioning. FAW Group is more inclined towards the mid-to-low-end market and has not seized opportunities in the high-end market. In contrast, SAIC Volkswagen is more positioned in the high-end market, so many people buy SAIC Volkswagen to prove their status. 4. Different production lines. Although there is not much difference, both have their own independent production lines. 5. Different cooperation periods. SAIC Volkswagen is earlier than FAW-Volkswagen and has more seniority.
As a car enthusiast, I often chat with friends about Volkswagen's two partners in China: FAW-Volkswagen was established in Changchun, Jilin, starting relatively later around 1991, with flagship models like the Magotan, CC, and Golf, which retain more of the original German style and offer a sportier driving experience. On the other hand, SAIC Volkswagen has been rooted in Shanghai for a longer time, starting production as early as 1984, with popular models like the Lavida and Passat. The Lavida, for instance, is specifically designed for Chinese families, featuring spacious interiors and softer suspensions, making it highly practical for daily commutes. Although both product lines bear the Volkswagen logo, FAW's models emphasize performance and refinement, while SAIC leans more towards comfort and affordability, allowing consumers to choose what suits their needs best. Geographically, the Changchun plant focuses more on original technology, whereas the Shanghai plant makes more localized adjustments with better cost control on parts. When buying a car, don’t just look at the brand—test driving will let you feel the obvious differences.
