JULY 18, 2007 - Volkswagen AG and Shanghai Volkswagen (SVW) have signed an agreement to jointly develop a new mid-size car for the domestic and North American market. Dr. Ulrich Hackenberg and Hubertus Lemke from VW signed the declaration with Chen Zhixin and Oeljeklaus from SVW. Also present at the signing ceremony were: SAIC Chairman Hu Maoyuan, SAIC Motor President Chen Hong, and Prof. Dr. Winterkorn, Dr. Heizman, Mr. De Silva and Dr. Vahland from VW.

　　As noted in the declaration, the two parties plan to cooperate in developing a new car for the North American and Chinese markets. The car will be based on a new B-platform and will serve as a successor to the PASSAT LINGYU model. From now on SVW research and development shall be integrated in the worldwide development network of Volkswagen products.

　　SVW will develop the vehicle body of the new car, including major elements of the exterior and interior. Maximum use will be made of SVW's test facilities, proving grounds, its prototype construction as well as the company's parts and tools manufacturing capabilities.

　　This project is notable since it marks the first time that SVW will be involved in the development of a new vehicle intended for both Chinese and global markets. SVW has invested about 3 Billion RMB to build up its development capabilities since starting up in 1984. So far, the company has built up a technical development force composed of over 1,200 engineers and technical staff.