Volkswagen has opted to spin-off its Jetta brand as a separate company dedicated to producing vehicles for the fast-growing Chinese market.
The joint venture between the German giant and Chinese state-controlled manufacturer First Auto Works will see the business offer three models for local consumption, with at least one likely to be all electric.
Jetta enjoys a long history in China where is regarded as a dependable vehicle brand, handing Volkswagen a head start on its competitors by tapping into existing awareness and sentiment.
Volkswagen board member Jürgen Stackmann wrote in a statement: “In China, the Jetta plays an extremely valuable role for us as a Volkswagen model. It has brought mobility for the masses, just like the Beetle once did in Europe.”
Operating via its own distinct network of dealers, the Jetta branded vehicles will be sold via digital showrooms and mobile sales trucks.
The Chinese auto market is in the midst of rapid change with strict new emissions targets forcing manufacturers to produce and sell a specific percentage of ‘zero emissions’ cars.