Volkswagen Group
China

Photo: Launch of the Golf GTE and Audi A3 e-Tron
Porsche Panamera S E-Hybrid – fuel consumption in l/100 km: 3.1 (combined); energy consumption in kWh/100 km: 16.2 (combined); CO2emissions in g/km: 71 (combined); CO2 efficiency class: A+

VW Golf GTE – fuel consumption in l/100 km: 1.7-1.5 (combined); energy consumption in kWh/100 km: 12.4-11.4 (combined); CO2 emissions in g/km: 39-35 (combined); CO2 efficiency class: A+

Audi A3 Sportback e-tron – fuel consumption in l/100 km: 1.8-1.7 (combined); energy consumption in kWh/100 km: 12.0-11.5 (combined); CO2 emissions in g/km: 40-38 (combined); CO2 efficiency class: A+

In the 2015 financial year, China was once again the Volkswagen Group’s single largest market. On the Chinese passenger car market, the Volkswagen Group offers more than 150 imported and locally produced models under the Volkswagen Passenger Cars, Audi, ŠKODA, Porsche, Bentley, Lamborghini, Bugatti and Volkswagen Commercial Vehicles brands.

The launch of the Golf GTE and the Audi A3 e-tron as import models represents a continuation of our electric mobility campaign in China. In addition to current and future import models, our China electric mobility strategy calls for both of the Group’s joint ventures to locally produce a total of 15 plug-in hybrid and electric vehicles in a series of product launches over the next three to four years.

At present, vehicles and components are manufactured at 20 sites in China. In cooperation with our joint-venture partner FAW, we also plan to build two new vehicle plants in Qingdao and Tianjin on the east coast of China, where we will manufacture eco-friendly models. The new plant in the southern Chinese city of Changsha was honored with the Triple-Star Green Building Design Award, the highest government award for green factory planning.

2015 Highlights

“The new Photovoltaics in FAW-Volkswagen Foshan will reduce annual CO2 emissions by more than 9,000 t.”

German-Chinese cooperation in the field of electro mobility

For electric mobility to be appealing to consumers, standardized charging systems and a functioning charging infrastructure are required. To progress towards this objective, key German and Chinese automakers have joined forces with other partners and German and Chinese ministries. The Sino-German EV Charging Project aims to find answers to key questions on topics such as statutory regulations, technical standards, sustainable business models and the impact on the power supply. The project has been running since 2013 and its third phase is scheduled for completion by the end of 2016. To date, more than 1,000 components have been inspected, almost 35,000 kilometers of test track have been laid and more than 600 charging cycles have been carried out.

Sustainable growth through personnel development

In 2015, the HR Development and Education Strategy in China entered its third year, targeting personnel development and vocational education and training with an eye to the sustainable development of the organization. Our key fields of action were covered by different functions and projects, such as the implementation and rollout of the MBQ/MEK “Meister” group leader qualification of technical competence centers with different technical focuses in various locations. The introduction and continuous improvement of three “Berufsfamilie” (professional family) academies; a comprehensive university cooperation program for talent recruitment, research and development of new technology, and the furtherance of vocational education; and the use of individual coaching as a new, customized tool for sustainable management development, all contributed to an improvement in personnel development in China.

Photovoltaics to reduce CO2 emissions

The aim of Volkswagen Group China was and is to increase the use of renewable energy and reduce CO2 emissions. With this in mind, the Company is making widespread use of photovoltaic (PV) power generation systems in its plants in China. Last year, several solar power generation projects were successfully launched, including our 10 MW PV power plant in FAW-VW CP Foshan. With an annual electricity output of 10 million kWh, it was successfully connected to the grid on August 28, 2015, and is expected to reduce annual CO2 emissions by around 10,000 t. Meanwhile, the total installed PV capacity of Shanghai Volkswagen is expected to reach 85 MW by the end of 2018 – equivalent to an annual electricity output of 80 million kWh and annual emission reductions of around 60,000 t of CO2.

Other Projects

New Natural Gas Boilers in Shanghai

In the reporting period, all coal-fired boilers at SAIC-Volkswagen in Shanghai were replaced with natural gas boilers. This will reduce annual coal consumption by almost 100,000 t, while at the same time reducing CO2 emissions by around 60,000 t and SO2 emissions by nearly 300 t.

Electricity for Road Users

Electrically powered cars only appeal to consumers if the charging infrastructure is easy and convenient to use. The second phase of Volkswagen Group China’s Private Charging Project was completed in 2015. The three-year project aims to implement two types of charging solution for VW customers with electric cars: the smaller wallbox and the large charging pole. The project covers three “charging scenarios”: private charging, for example in one’s own garage; semi-public charging, such as parking lots for office buildings, and public charging.

Greener Plants

Volkswagen Group China plants follow the “Think Blue. Factory.” sustainability principle.

The SAIC-VW and FAW-VW sites are putting their own environmental protection concepts into practice. For example, FAW-Volkswagen recycled more than 160,000 cm3 of wastewater and industrial wastewater. This was used for green-space irrigation, in sanitary systems and in production. As part of the greening program, more than 100 t of volatile organic compounds (VOC) were rendered harmless by means of natural gas combustion systems; the resulting heat was used in production processes. In addition, an employee shuttle service reduces CO2 emissions by more than 4,000 t each year, and 40,000 t of waste are recycled.

SAIC-Volkswagen also achieved a great deal in the reporting period. A new online system for measuring energy consumption was installed, the use of alternative energy sources was expanded and all coal-fired boilers were shut down. The organization’s power requirements are now also met by cogeneration (CHP) systems. Another objective for the near future is decreasing water consumption. In 2015, the organization’s past consumption was analyzed and an employee award for water-saving ideas was introduced. In addition, a pilot project for waste reduction was launched, and the use of new paint shops and water-based paints led to a reduction in VOC emissions of around 1.2 kg per vehicle.

Stakeholder Dialog

With this in mind, we completed two major projects aimed at fostering dialog with our customers, promoting our brand and developing a better understanding of our customers’ needs and requirements. The results will facilitate our future work relating to Big Data and sustainability.

Human Resource Management

Big Data

Volkswagen Group China’s Consumer Data Lab launched its first Hackathon in China at Tsinghua University. Ten teams of IT students and young professionals analyzed data from a wide variety of sources in order to discover patterns, develop models and identify business opportunities.

Environment

Sharing Environmental Management Experience

In 2015, we held two events to explore best practices and lessons learned in the field of environmental management. They were attended by all employees responsible for environmental protection from all VW vehicle and component plants in China. The events aimed to raise ecological awareness, expand environmental protection activities, set work standards and allow participants to share their experience. Going forward, we plan to hold these meetings at regular intervals, four times a year.

Meeting of Vehicle and Component Plant Managers

Environmental management is a fixed topic on the agenda of the regular plant manager meetings in China. The senior management team is regularly updated on the status of environmental activities at VW plants in China.

Awards

Personnel

  • In 2015, VCIC, SAIC-Volkswagen and FAW-Volkswagen received the “Top Employers China 2015” award from the Top Employers Institute.
  • SVW and FAW-VW also received awards as “The Top Auto Company to Work for Chinese Graduates” from ChinaHR.com, one of China’s leading online recruiters.
  • In 2015, SAIC-Volkswagen won the “Chinese Best Employer Award 2015”, presented by Peking University’s Corporate Social Responsibility and Employer Brand Research Center together with Zhaopin.com.

Environment

  • In December 2015, FAW-VW CP Chengdu was given the Green Building operation label with the highest award of Triple-Star.
  • The environmental management system at the new Tianjin automatic transmission plant (VWATJ) was awarded ISO 14001:2004 certification in November 2015 (SOP in 2014). Since then, all plants in China have been certified to ISO 14001.