Volkswagen is to extend its partnership with its Chinese joint venture, First Automotive Works (FAW), for a further 25 years. The German car maker said that the two companies will expand their R&D activities, focusing on the development of alternative drive technologies. They are also planning to build two new plants in Qingdao and Tianjin.

Volkswagen board member Martin Winterkorn said: “Together with its partners, VW is focusing on innovation, eco-friendly technologies and excellently trained employees in China. This agreements pave the way for the sustainable development of China’s automotive industry and for the Volkswagen Group and its joint ventures to benefit from growth.”