SAIC Volkswagen's Roadmap and Methodology for Transformation

"‘I’m not complaining about the hand I’ve been dealt—whatever cards come my way, we must work hard to play them effectively,’ said Jia Jianxu during his first public remarks at SAIC Volkswagen’s IDFestival media briefing on October 14, eight months after taking office as the company’s new general manager. Jia, who has led Yanfeng, a leading auto parts supplier, for five years, is now making a bold career shift by joining SAIC Volkswagen—a top-tier automaker that ranks among China’s industry leaders in both production and sales—but not exactly at its brightest moment. Over the past few months, he hasn’t only developed a clear management philosophy (how to do things), but has also successfully implemented numerous initiatives (what to do). Along the way, he’s even left a distinct mark, infusing the brand and product strategy with a fresh approach and distinctive style. To outsiders, Jia undoubtedly comes across as an energetic, action-oriented leader known for his exceptional efficiency. Though he’s widely admired for his straightforward communication style—free from any corporate jargon—he delivered a particularly thought-provoking statement at the briefing. Beyond hinting that he’s stepping into a challenging "headwind situation," Jia seemed to signal that he’s fully prepared mentally, even having already mapped out several potential solutions. It wasn’t until after he took office and spent time thoroughly understanding the company’s current landscape that he finally finalized both the mid-term and long-term strategies—likely no later than July."

Jia Jianxu has already proposed this mid-term strategy on several occasions: "Boost gasoline vehicles, stabilize electric vehicles, and elevate Audi." This approach carries significant practical relevance—leveraging the strong position currently held by SAIC Volkswagen to deliver top-notch performance, rather than hastily chasing after fleeting trends that could ultimately cost them valuable market assets. Digging deeper, there’s a clear intention behind it: using time gained from strategic positioning to accumulate new technological advantages. After all, SAIC’s gasoline vehicles enjoy a well-established reputation built over years of history, boasting a complete product lineup and an existing customer base totaling 27 million units. At such a critical juncture, losing confidence in gasoline vehicles would amount to "surrenderism." Thus, "boosting gasoline vehicles" isn’t just about immediate gains—it’s also crucial for ensuring the long-term health of the company’s future operations. Meanwhile, the emphasis on "stabilizing electric vehicles" may come as a bit of a surprise, given that this remains a market still enjoying double-digit growth rates. Yet, SAIC Volkswagen’s strategy is precisely to take a measured, steady approach—anchoring itself firmly before making further moves.
Yu Jingmin, General Manager of SAIC Volkswagen Sales Company, stated that the ID.3 has been selling over 10,000 units per month since July, with monthly growth consistently around 1,000 vehicles. He added that reaching 16,000 units in October is highly likely. SAIC has launched several appealing "variants" within its three ID. series models, offering products that cater to a wide range of price points while highlighting distinct strengths—essentially positioning them as volume-driven vehicles. Now, SAIC Volkswagen is considering whether to operate the Anting plant on two shifts, potentially doubling its current production capacity.
According to the plan, the electric vehicle segment will have two key anchors: one is the ID.3, and the other, Jia Jianxu revealed, will be the ID.Buzz, which Volkswagen intends to introduce for display and sales at the ID Store via an import model. "At the heart of all these Volkswagen electric vehicles remains reliability—this is both our current selling point and deeply embedded in Volkswagen's DNA. Meanwhile, the ID series is steadily advancing toward greater intelligence, making cars smarter and more connected than ever before."
Mentioning the highly debated topic of electric vehicle intelligence, Jia candidly admitted that while the current product lineup does have significant room for improvement, SAIC Volkswagen’s current positioning is clearly focused on becoming a "city commuter vehicle." As for the electrification of traditional internal-combustion engine cars, it essentially means a major overhaul of the vehicle’s electronic and electrical architecture. In fact, nearly all automakers—whether joint ventures or independent brands—are treating gasoline-powered vehicles as existing assets, with their design approaches largely locked in and unlikely to change unless they can develop entirely new architectures specifically for upcoming fuel-efficient models, ensuring steady sales over the next three to five years at the very least. Without this critical step, it would be impossible to recoup the substantial investments made in this area. To date, SAIC Volkswagen has refrained from revealing specific details on how it plans to tackle this challenge. However, it’s worth noting that Jia previously played a key role in leading intelligent cockpit initiatives at Yanfeng. This background undoubtedly positions SAIC Volkswagen well to successfully transition its powertrain portfolio, elevating both its intelligent driving systems and cabin experiences—and doing so across both gasoline and electric vehicle platforms. Moreover, aligning with Audi represents an inevitable strategic move. Jia Jianxu believes that even if the future market for gasoline-powered vehicles shrinks to just 7 million units, roughly half of those could still belong to the BBA trio—BMW, Benz, and Audi. Yet, SAIC Audi’s mission goes beyond mere market share; it aims to redefine two core brand identities: first, establishing itself firmly as a premium luxury brand, and second, accelerating its push toward full-scale electrification. In essence, this dual focus reflects the unique convergence of luxury and innovation that SAIC Volkswagen must master to stay competitive in an increasingly complex automotive landscape. After all, all global luxury brands today face similar existential questions about their long-term viability, and navigating these challenges is never straightforward—or without clear-cut solutions.
In this segment, Jia Jianxu only mentioned launching entirely new electric products to meet consumer demands and help make the public—spanning both Audi and Volkswagen brands—smarter. However, specific details on how this will be achieved remain somewhat unclear. We believe that further explanations will emerge at the coordination level between Audi China and SAIC Audi. What’s clear, though, is that "SAIC Audi" will require higher-level strategic negotiations between SAIC Motor and the Volkswagen Group, while the market will continue to watch closely and patiently.

In the long term, Jia Jianxu is more focused on strategic resource allocation and the overall direction of operations. He pointed out that what’s driving breakthroughs now is the "take-and-adapt" approach. Previously, this often meant acquiring vehicle models and technologies from foreign partners; today, however, it involves integrating the best elements from both shareholders. This marks a departure from the conventional cooperative model previously understood in joint-venture automakers. Bernd, Chairman and CEO of Volkswagen China, has articulated the group’s attitude toward China as “in China, for China”—a sentiment later refined with the addition of “listening to China.” Such an approach not only reflects humility but also represents a clear revision and reaffirmation of Volkswagen’s overarching strategy in the Chinese market.
After witnessing unprecedented growth and significant advancements in technology and market presence within the Chinese market, Volkswagen has chosen to forge an even deeper partnership with China—rather than the other way around. Volkswagen CEO Oliver Blume once famously remarked that he views the Chinese market as "a gymnasium for innovation." Avoiding competition won’t help Volkswagen improve; instead, integrating cutting-edge Chinese technologies and leveraging the constructive role of its Chinese partners have become the inevitable path forward. Guided by this principle, Jia Jianxu has boldly initiated a series of transformative reforms. The first step? A complete overhaul of the company’s organizational structure—a thoroughly pragmatic move that eschews superficial fixes or minor adjustments. As Jia revealed, this decision couldn’t be made unilaterally; it required negotiations with the German side. Surprisingly, both parties reached a consensus within just five minutes. In a remarkable show of collaboration, the German team agreed to relinquish their previously assigned business units, while Jia himself stepped back from his direct oversight roles. Together, these changes dismantled the traditional siloed structure, breaking down rigid project boundaries and reorganizing the company into four distinct Vehicle Line Entities (VLEs): one dedicated to the Audi brand, one focused on Volkswagen’s electric vehicles, one specializing in compact gasoline-powered cars, and another centered on large-sized gasoline-powered models.
The birth of VLE was ostensibly aimed at product development, but in reality, it also enabled seamless sharing of resources across different products—and as a result, the development approaches have all shifted, significantly boosting agility. It’s understood that right now, the most critical initial task for VLE is defining the requirements. PHEV models are exclusive to China; Volkswagen doesn’t offer similar products in other regional markets, and Europe simply lacks the specific use cases for PHEVs. That’s why the PHEV project is firmly led by the Chinese team—roughly handling 75% of the development tasks—making this truly a technology roadmap designed and tailored for China, by Chinese engineers. Jia Jianxu emphasizes his approach of "talking while doing," which essentially means streamlining decision-making processes. However, this method can sometimes come across as somewhat unilateral. The German side has already recognized this issue and is actively discussing it further—though they’re well aware that the Chinese team has already assembled its dedicated group and is fully committed to driving the project forward. As Jia Jianxu puts it, "If we don’t act swiftly, there’s no hope for us." The German partners, too, wholeheartedly endorse rapid decision-making and prompt execution.
In Jia's view, it’s crucial to strengthen the Chinese team’s technological advantages in areas like intelligent systems and new energy. He emphasizes decisively integrating these cutting-edge tech assets into the company—and even being willing to tap external expertise—while remaining open-minded and flexible, as long as it helps advance the core strategic goals. Meanwhile, the newly established Audi task forces (one for gasoline vehicles and another for electric cars), though appearing at first glance as merely tactical moves, become far more significant when you consider that they’ve brought together over 400 engineers working closely with SAIC’s Research & Development Center. As a result, the future trajectory of SAIC Audi is now clearly taking shape. In other words, this revamped R&D framework will inevitably have a lasting impact on Audi’s long-term development.

"SAIC Volkswagen's strategic positioning in the 'post-joint venture era' has become critically important under the leadership of its new management team. 'From initially relying heavily on foreign technical assets and managerial expertise, China has now cultivated a fertile ground for talent, technology, and innovation—plus, the platform is already in place, and both shareholders are fully supportive. With this solid foundation, we can definitely get the job done,' says Jia Jianxu. He doesn’t shy away from acknowledging that the interests of the joint venture partners aren’t always perfectly aligned; in fact, it’s more of a 'competitive collaboration.' While going solo would mean one party having complete control, a joint venture inevitably requires compromise and adaptation. At first glance, this process may seem like a waste of time due to the inevitable debates—but precisely because these discussions help refine perspectives, they ultimately lead to fewer mistakes down the road.' Jia Jianxu’s approach strikes a balance by preserving this essential dynamic while simultaneously accelerating progress."
To this end, the new management team needs to undertake a second round of cultural integration—timing that could not be more opportune. Specifically, the German side’s renowned brand and extensive expertise remain deeply rooted in China, while the Chinese team has grown robustly enough to begin making significant contributions. Both sides must leverage each other’s strengths, fostering mutual success. Underpinned by a high degree of strategic trust, details can be streamlined, allowing focus to shift squarely toward efficiency. This also means that as Jia Jianxu reshapes the R&D organizational structure, he is simultaneously overhauling decision-making processes—and even redefining the company’s overall management style. As we all know, large enterprises often place great emphasis on rigid processes, which, at times, can feel overly inflexible. Yet these processes exist precisely to ensure stringent oversight and enhance the organization’s ability to tolerate mistakes. However, when the moment calls for extraordinary action, sometimes the only way forward is to embrace bold, unconventional approaches.
Some decisions, once clearly identified, must be pushed forward swiftly. Whether it’s PHEVs, intelligent technologies, or other key areas of competition in the new-energy sector, the window of opportunity isn’t exactly abundant. As a top-tier joint venture, SAIC Volkswagen boasts strong financial resilience, with healthy current business cash flow and robust finances. Yet, to secure its future success, it’s essential to take a calculated gamble. Leading the charge typically calls for a steady, cautious approach—avoiding unnecessary risks. However, the automotive market today is fiercely competitive and undergoing rapid transformation. Seizing these golden opportunities could very well become the single greatest strategic risk. While tactical execution should remain prudent, at the strategic level, Jia Jianxu knows full well that he hasn’t come here simply to "defend the status quo." Instead, he must wield bold, decisive moves—boldly advancing with confidence—to safeguard not just the present, but also the promise of tomorrow.

Translated from Sina Auto

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