Volkswagen Renaissance Begins In China

Support CleanTechnica’s work through a Substack subscription or on Stripe.

A few decades ago, the western world looked at China’s one billion people and salivated at the prospect of selling them consumer goods manufactured in the US and Europe, starting with automobiles. China welcomed the influx of foreign capital but made partnering with a domestic manufacturer the price of admission to its markets.

Those western corporations were only too happy to comply. After all, how hard could it be? Take a European or US model, slap a Chinese brand on it, then sit back and watch the money roll in. Those western companies were soon left in the dust as the Chinese said “Thank you very much. We’ll take it from here.” Now the shoe is on the other foot and Chinese companies are teaching those foreign manufacturers how business is done “at China speed.”

Volkswagen placed big bets on its business in China, and for a while, things went really well. In fact, profits from China helped it survive the pain of Dieselgate. Then its sales in China came to a screeching halt as the EV revolution took the Chinese market by storm. Several other western manufacturers found they no longer had a competitive advantage in the new age of cars as rolling computers came about and they closed their operations in China.

The thing that none of those smart people in Wolfsburg and other manufacturing capitals realized until it was too late is that China puts a premium on technical education. As a result, it graduates more engineers each year than any other nation, and those engineers are really, really good at designing the high tech automobiles that Tesla first introduced in 2011.

The other hard lesson the western automakers have learned is that Chinese customers have different expectations than US or European drivers. For one thing, they still like sedans, but only extended wheelbase versions that provide plenty of room for passengers in the back seat. They also like plug-in hybrids that have significant battery-only range — a class of vehicle basically known as extended-range EVs.

Volkswagen ePro EREV

Volkswagen is keen to climb back on the horse in China after years of declining sales. Zachary Shahan reported recently that it has opened its first development center outside Europe in China. Together with domestic partner SAIC, it has completely redesigned its Passat PHEV to appeal to Chinese customers. The Passat sells well in China. According to Car News China, in the first nine months of this year, 187,807 Passats were sold, making it the best selling joint venture midsize car.

The new car, called the Passat ePro, is built on an all-new chassis designed specifically for the long-range EREVs Chinese customers expect. It has a 22 kWh battery that gives the car 150 km of battery-only range. Forward progress is provided by a 145 kW (194 hp) electric motor, and there is an onboard 1.5 liter range extender turbocharged engine that is rated at 95 kW (128 hp). Total range in the highly optimistic CLTC testing cycle used by China is 1300 km — more than 800 miles. An EPA equivalent would be about 25 percent less.

[Sharp-eyed readers will note this powertrain is a close cousin to the Voltec system introduced by GM in 2014 and then abandoned, although some versions of it live on in China. The US doesn’t need huge tariffs on electric cars. It needs policies that incentify manufacturers to build cutting edge vehicles, not the recycled gas hogs they have been foisting off on customers as “new” for decades. We now return you to your regular programming, already in progress.]

The Passat ePro is 5017 mm (about 16 feet) long, which means rear seat room is ample. There is a hidden message in that statistic, however. Every car company in China is thinking about exporting its cars to foreign markets. However, Europe has recently set a size limit on passenger cars of 5000 mm. Does that suggest the Passat ePro will never be offered to European customers? Perhaps. Although, shortening the length of the car by 17 mm (2/3 of an inch) would not be that hard a task.

Volkswagen ID. Unyx 08

Car News China raised this point while writing about another new offering from Volkswagen, this one manufactured by Volkswagen Anhui from a design created in collaboration with Xpeng. Volkswagen has chosen Xpeng to help it solve its computer and software woes. [It also has a $5.8 billion venture with Rivian to do the same thing for cars sold in the US and in European markets.]

The thing Car News China noticed is the new car, called the ID. Unyx 08, is precisely 5000 millimeters long, which means it could be exported to Europe if the company decided to do so. At the moment, that is just an interesting bit of information, but it could be a clue to Volkswagen’s future plans.

One thing is very clear — the ID. Unyx 08 bears very little physical resemblance to any other battery electric car from Volkswagen. Once again, the car is maximized to appeal to Chinese customers, but could offer a glimpse of where the company’s design language is headed in the future.

The ID. Unyx 08 will offer two batteries — 82 kWh and 95 kWh — with a range of 630 to 730 km (390 to 450 miles) CLTC. The car has a single 230 kW (308 hp) motor. Chinese customers expect their cars to come with a heavy dose of technology, and the ID. Unyx 08 will not disappoint. In addition to the usual array of touchscreens, it is equipped with an L2++ level advanced driver assistance system that includes a “parking-to-parking” function for enhanced convenience.

“The vehicle will also integrate an AI intelligent assistant powered by a large language model. Full-vehicle OTA updates will keep the ID.Unyx 08’s software current, while the 800 volt architecture enables rapid charging times,” Car News China reports.

Volkswagen shows no signs of giving up its quest for sales in China. According to Volkswagen China, by 2027, the company will offer more than 20 electrified intelligent models. Notice that “electrified” includes plug-in hybrids like the Passat ePro. By 2030, that will expand to 30 models spanning all segments of the new car market.

Which leaves us with this question: Is Volkswagen planning two (or more) different model lineups, one for Europe and the US and the other for China and other ASEAN markets? If so, the company is being very quiet about its intentions, perhaps in part to avoid further disruptions with its domestic labor force as it tries to weather the transition to electric vehicles in the European Union.

The gates of history turn on tiny hinges, my high school history teacher liked to say. The fact that the new ID. Unyx 08 is precisely 5000 mm long and not a silly millimeter longer is an indicator of what the thinking is inside the Volkswagen C Suite in Wolfsburg.