In late December 2024, following a significant reshuffle in its management structure, reports emerged that FAW-Volkswagen is implementing large-scale personnel changes within its marketing divisionsThis adjustment involves the repositioning of approximately 30 middle managers across various brands, marketing sectors, and regional operationsThis move has drawn attention from multiple media outlets, highlighting the scale of transformation taking place within one of China’s leading automotive joint ventures.

A seasoned automotive industry insider highlighted that the breadth and intensity of these recent personnel adjustments reflect the company's efforts toward comprehensive systemic reformThe goal appears to be a robust reconfiguration of competitive capabilities in a rapidly evolving market environment, especially accentuated by the surge in electric vehicle (EV) sales that has dramatically altered the rankings among automakers in recent yearsFAW-Volkswagen has undoubtedly felt immense pressure as it navigates this shifting landscape, requiring a swift and strategic response to invigorate its marketing, products, and operational efficiency.

According to data supplied by official sources, FAW-Volkswagen achieved a total sales volume of 1.659 million vehicles in 2024 (including Audi imports), making it the only jointly-owned enterprise in the industry to surpass 1.6 million in salesIt continues to retain its title as the leading seller among joint venture car companies and dominates the domestic fuel vehicle market as well.

Nonetheless, this commendable performance pales in comparison to the peak sales figures of 2.1299 million units in 2019, when it led the Chinese auto marketSince then, FAW-Volkswagen's sales have steadily declined, with unit sales reported at 2.1619 million, 1.8578 million, 1.8236 million, 1.9102 million, and finally, 1.659 million from 2020 to 2024. Currently, the company's sales heavily rely on the performance of fuel vehicles, revealing an urgent need for breakthroughs in the realms of electrification and intelligence and the rising tide of competition in the automotive sector.

The recent adjustments in personnel involving around 30 middle managers mark a pivotal step for FAW-Volkswagen as they seek to redefine their marketing strategy and operational efficiency

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As an integral part of the automotive landscape in China, the timely changes that have taken place at the end of 2024 and the beginning of 2025 are intended to reshape the company's market strategy significantly.

Newly appointed general manager Chen Bin has been proactive in assuming his roleBefore officially taking the reins, Chen conducted an extensive survey of dealership operationsOn December 31, 2024, shortly after his appointment, he convened a large-scale meeting involving about 3,000 employeesThis session served to outline the immediate challenges facing FAW-Volkswagen, illustrating his commitment to cultivating efficiency right from his initial days in leadership.

By January 2025, approximately 30 middle-level marketing and operations personnel underwent reassignmentNotably, this personnel restructuring not only considered individual performance and capabilities but also incorporated a groundbreaking democratic evaluation process, signaling a philosophical shift in management and operational tactics at FAW-Volkswagen.

Emphasizing a readiness to tackle emerging challenges head-on, FAW-Volkswagen organized a media roundtable focusing on the company’s strategies for 2025 and beyondThe words of senior executive Wu Yingkai echoed through the gathering as he highlighted the keyword for the year ahead: “breakthrough.” This sentiment of ambition was reflected in his emphasis on the necessity for advancements across multiple dimensions of business—from product offerings to marketing strategies and operating efficiencies.

Internal figures at FAW-Volkswagen have suggested that as a joint venture, they currently face a daunting series of challengesWu articulated that the company is actively exploring novel marketing approaches, business models, and management strategies in an effort to foster self-innovation and adaptability in the face of market shifts.

The pathway ahead entails a complete transformation in FAW-Volkswagen’s approach to market challenges, pivoting from merely focusing on “users” to “clients” and shifting perspectives from “product” to “merchandise,” ultimately moving from traditional promotions to a more strategic marketing focus

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Wu argued for a need to engineer a mindset change that prioritizes customer insights, problem-solving, and results-oriented outcomes.

With market shares dwindling, it is imperative for joint ventures like FAW-Volkswagen to confront the transformative agonies of the automotive market head-onWu laid bare the three predominant challenges facing joint ventures: the constriction of market space, a slow pace of adaptation for transformation, and a pressing necessity to enhance product launch speeds and overall product competitiveness.

In this context, FAW-Volkswagen aims to undertake focused breakthroughs in marketing, product development, and technological innovation throughout 2025, pursuing a market strategy encapsulated in the mantra of “stabilizing fuel while accelerating electric expansion and strategizing international ventures.”

With the new management team in place and adjustments underway in brand marketing, FAW-Volkswagen plans an aggressive product development agenda for 2025. The strategy revolves around “deepening fuel vehicle capabilities while innovating hybrids and pushing for pure electric advancements.” This aim is to ensure robust performance in the fuel vehicle market while establishing a firm footing in the burgeoning new energy segment.

Over the next 20 months, FAW-Volkswagen's three major brands—Volkswagen, Audi, and Jetta—are slated to introduce a diverse range of vehicles, releasing 19 new models as part of the established dual energy strategy lying at the intersection of “oil and electricity.” These releases promise substantial advancements in areas such as intelligent control systems, enhanced driving capabilities, and improved energy efficiency.

Additionally, the Volkswagen brand is set for a comprehensive upgrade in its product offerings in 2025, with plans to launch seven key modelsAudi aims to release five new models, including a new Audi A5L, while Jetta is looking to embrace a "second growth curve" with five new energy vehicle models scheduled for release in the coming years, marking a definitive departure from an era devoid of electric offerings.

Looking ahead, FAW-Volkswagen is poised for a dynamic product rollout phase in 2026 and 2027. The company intends to usher in the era of hybrids by achieving full coverage of plug-in hybrid electric vehicles (PHEVs, including range-extended EVs) while launching a fresh lineup of purely electric offerings.

Technologically, FAW-Volkswagen is investing heavily in enhancing its smart vehicle capabilities

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