Core Insights - The signing of the cooperation agreement between Volkswagen Group (China), FAW Group, and Chengdu Economic and Technological Development Zone marks a significant step towards the localization of the Jetta brand and introduces local capital into the partnership, representing an innovative breakthrough in Volkswagen's joint venture model [1][2] Group 1: Company Strategy and Development - The new company will fully integrate existing Jetta resources and introduce local capital as new investors, while Jetta will continue to operate as a sub-brand of Volkswagen, maximizing synergies with the Volkswagen Group and FAW-Volkswagen [1][2] - By 2028, Jetta plans to launch four new energy models targeting the entry-level market, starting with the Central Asian market for overseas expansion [1][4] - The establishment of the new company aims to leverage regional industrial synergies to accelerate Jetta's electrification process and enhance operational efficiency [1][4] Group 2: Market Position and Performance - Jetta, which was introduced to China in 1991 and evolved into a sub-brand in 2019, is now transitioning into a standalone entity, a unique move among joint venture brands [2] - Jetta's sales performance has been declining, with a projected total sales of 120,000 units in 2024, down 25.9% from 162,000 units in 2023, highlighting the urgency for a successful transformation [3] - The compact car market is crucial for Volkswagen's market share in China, with compact models expected to account for nearly half of the Chinese new energy vehicle market by 2030, making Jetta's transition to electric vehicles vital for Volkswagen's overall transformation [4][5] Group 3: Future Plans and Collaborations - The goal for the new Jetta company is to create a trillion-level industrial value chain encompassing research, production, supply, and sales by 2030, further integrating Jetta into the automotive ecosystem in Sichuan Province and the Southwest region [4] - Volkswagen plans to launch approximately 50 new energy vehicles in China by 2030, including around 30 pure electric models, emphasizing the importance of Jetta's electrification for achieving comprehensive coverage in the smart new energy vehicle market [4][5] - The success of Jetta's transformation will depend on product competitiveness, with expectations for more local technological and industrial chain collaborations in the future [5]