The VW subsidiary wants to produce Scania trucks for the world's largest commercial vehicle market on site.
With the establishment of a production facility for Scania trucks in China, the German Volkswagen Group is strengthening its business in the world's largest commercial vehicle market. Series production in a factory in Rugao in Jiangsu Province near Shanghai is scheduled to begin in early 2022, as Volkswagen commercial vehicle holding Traton announced on Tuesday. Research and development would also be located there.
With this step Traton is driving its global expansion after the parent company of Scania and MAN initiated the takeover of the US truck manufacturer Navistar a good month ago.
Traton boss Matthias Gründler referred to the goal of the group, which has so far mainly been present in Europe and South America, to be represented in all important markets. “Scania's construction of its own factory in China brings the entire group a big step closer to this goal,” said Gründler.
In the race with Chinese competitors such as FAW Jiefag and Dongfeng, Traton's premium brand Scania should score points with technological advantages. “The technological requirements for commercial vehicles are increasing worldwide and increasingly converging on the international markets,” explained Gründler. This is an opportunity for the Traton brands. MAN is already cooperating with the local partner Sinotruk.
Scania acquired the license to start its own production in the traditionally strictly regulated Chinese market by taking over a local manufacturer.
