[Dalian, June 13, 2025] Over the past 20 years, Volkswagen FAW Engine (Dalian) Co., Ltd. (VWED) has served as one of the main driving forces behind Volkswagen's success in China. With plants in Dalian and Changchun, the company has delivered over 9 million engines, contributing significantly to the Group’s business in China, while also supporting local economic development and job creation. Its primary product, the EA888 turbocharged direct-injection engine, powers some of FAW-Volkswagen’s iconic high-performance models, including the Magotan, Golf, and Audi A6L. On the occasion of the 20th anniversary, the company not only celebrated the two-decade journey, but also highlighted its progress in localized manufacturing, innovation, and sustainability, and outlined its plans for future transformation. 

Liu Enju, Deputy Secretary of Dalian Municipal Committee of the Communist Party of China (CPC), Secretary of the CPC Working Committee of Dalian Jinpu New Area (Dalian Economic and Technological Development Zone), and Secretary of the CPC Committee of the China (Liaoning) Pilot Free Trade Zone Dalian Area (Dalian Free Trade Zone); Qiu Baolin, Member of the Standing Committee of Dalian Municipal Committee of the CPC, Deputy Mayor of the Dalian Government; Olaf Korzinovski, Chairman of Volkswagen FAW Engine (Dalian), Member of the Volkswagen Group Board of Management; and Sun Huibin, Vice Chairman of Volkswagen FAW Engine (Dalian), attended the event. Also present were officials from Jinpu New Area and relevant government bureaus, along with representatives from industry, and partner organizations, and company employees, who jointly witnessed this milestone moment.

Speaking at the event, Olaf Korzinovski, Executive Vice President of Volkswagen Group China responsible for Production and Components and Member of the Group Board of Management, remarked: “Over the past two decades, Volkswagen FAW Engine (Dalian) has represented the strength of Sino-German cooperation and local integration. We are grateful to the local government, our partners, and all employees for their continued trust and support. At a time when the automotive industry is undergoing profound change, this strong foundation empowers us to move forward with confidence.” 

20 Years On: Milestones of Excellence

Founded in 2005 as a joint venture between Volkswagen (China) Investment Co., Ltd. and FAW Equity Investment (Tianjin) Co., Ltd., Volkswagen FAW Engine (Dalian) has served as a key engine manufacturing site within Volkswagen Group China. 

With its excellence in operational efficiency, production management, and environmental responsibility, VWED stands out in Volkswagen Group Speed + Award, an internal competition that recognizes plants in the Group’s global manufacturing network. In the 2024 Speed+ Award, VWED won three Gold medals in CIP 4.0 Human & Digitalization, Productivity, and Environment, with particularly outstanding performance in the field of digitalization.

Exploring New Horizons

Amid profound transformation in the automotive industry, VWED embraces changes, building on two decades of growth and expertise to enter a new era of intelligent and sustainable development.

As Volkswagen Group’s sole engine remanufacturing facility in China, VWED has long been a pioneer in circular economy practices. Since launching China’s first passenger car powertrain remanufacturing project in 2011, by the end of 2024, it has achieved a closed-loop material reuse rate of up to 70%, delivering more than 17,000 remanufactured engines to local market and reducing CO₂ emissions by over 5,118 tons. VWED is thus impressively demonstrating how production facilities can successfully support the circular economy in the future by feeding used materials back into the cycle for new products, while upholding the highest standards of quality and safety.

Moreover, since 2018, the company has gradually implemented a series of digital initiatives, including the PDM system, Digital Shopfloor Management system, Digital TPM system, and Digital Value Stream Monitor—enabling systematic, real-time monitoring of production and process data, and facilitating the establishment of a fully digitalized workshop.

VWED also regards intelligent manufacturing as a key driver of its digital transformation. The company has initiated in-house development of Autonomous Mobile Robot (AMR) technology. In collaboration with the Advanced Institute of Information Technology of Peking University, it is also developing a dedicated dispatching system to support efficient AMR operation and coordination. The company is planning to scale the deployment of AMR systems within the Group and eventually across the wider industry, transforming in-house R&D into tangible commercial value. 

Sustainability in Action

Alongside its digital transformation, VWED places equal importance on sustainability as a key aspect of its business operation excellence. In alignment with the Group’s regenerate+ sustainability strategy and goTOzero environmental mission, VWED is committed to achieving the vision of “Zero Impact Factory” by 2050, and continues to explore the integration of green development, low-carbon environmental protection, and biodiversity principles.

In recent years, the company has implemented more than 60 initiatives to reduce environmental impact and improve resource efficiency, including the installation of a 4 MW distributed photovoltaic power plant, 100% adoption of green power, inverter conversion of key energy-consuming equipment, complete transition to LED lighting, and water reuse initiatives. Within Volkswagen Group China’s manufacturing network, it is also the first plant to reutilize canteen waste to produce biogas, furthering efforts in reducing carbon emissions. These efforts have yielded significant advancements in green energy utilization, energy efficiency enhancement, and resource recycling.

As part of its broader sustainability efforts, the company also launched a tree-planting project in 2021, engaging nearly 100 employees. A total of 600 trees and 4,000 shrubs were planted across 20,000 square meters of factory ground, creating a thriving habitat for local biodiversity. 

(From left) Yan Dezhong, Vice General Manager of VWED; Chang Shuo, Director of Shareholder and Joint Venture Affairs at Volkswagen Group China and Chairman of the Supervisory Board of VWED; Dr. Johannes Roscheck, President of Audi China and Member of the Board of Management of VWED; Sun Huibin, General Manager of Strategy and Cooperation Department of FAW and Vice Chairman of VWED; Liu Enju, Deputy Secretary of Dalian Municipal Committee of the Communist Party of China (CPC), Secretary of the CPC Working Committee of Dalian Jinpu New Area (Dalian Economic and Technological Development Zone), and Secretary of the CPC Committee of the China (Liaoning) Pilot Free Trade Zone Dalian Area (Dalian Free Trade Zone); Olaf Korzinovski, Executive Vice President of the Volkswagen Group China and Chairman of Board Directors of VWED; Qiu Baolin, Member of the Standing Committee of Dalian Municipal Committee of the CPC, Deputy Mayor of the Dalian Government; Li Xiuzhu, Vice General Manager of FAW Equity Investment (Tianjin) and Member of the Board of Management of VWED; Lyu Dongsheng, Vice Secretary of the CPC Working Committee and Director of the Administrative Committee of Dalian Jinpu New Area, and Dr. Raimund Rösch, General Manager of VWED attended the 20th anniversary ceremony of VWED.

Olaf Korzinovski, Executive Vice President of the Volkswagen Group China and Chairman of Board Directors VWED

Sun Huibin, General Manager of Strategy and Cooperation Department of FAW and Vice Chairman of VWED

Lyu Dongsheng, Vice Secretary of the CPC Working Committee and Director of the Administrative Committee of Dalian Jinpu New Area

Volkswagen FAW Engine (Dalian) Co., Ltd.