Following the foundation of the Volkswagen FAW Engine Plant in China, Volkswagen China launched another strategy to reduce costs and accelerate localization on February 28th, establishing the China Central Laboratory. According to reports, the laboratory is the product of the cooperation between Volkswagen Automotive and the Beijing Chemical Research Institute of Sinopec Group, and it is its first central laboratory in China with an equipment investment of 10.6 million yuan. This central laboratory will provide better technical support for Volkswagen Group to increase localization rates and purchase domestic raw materials in China, and at the same time, it can further support the development and application of new materials by Chinese auto parts manufacturers and suppliers. Will effectively promote the export of domestic materials. Volkswagen China stated that setting up a central laboratory is part of the long-term development strategy of Volkswagen Group in China. It aims to increase the market competitiveness of Volkswagen Group in China and consolidate its leading position in the market. Previously, if Volkswagen China selected a Chinese parts supplier, it would need to send the materials back to the German headquarters for inspection and certification. After the establishment of the center, it will save time and costs to a large extent. The central laboratory will use international advanced inspection technologies to conduct material analysis and inspections, as well as perform defect analysis, on-site corrosion, and on-site atmospheric tests, focusing on automotive components at the automotive product development stage. These sample tests completed directly in China will enable Volkswagen to accelerate the selection of Chinese auto parts manufacturers as suppliers and help them improve their products and technology. At the same time, the Volkswagen Group and Sinopec Beijing Research Institute of Chemical Industry have begun to jointly develop new materials, such as automotive fuel tank materials, which is the first step for both parties to further develop close cooperation in the automotive materials field. Sinopec is the largest manufacturer of petrochemical products in China. Its Beijing Research Institute of Chemical Industry is the authoritative scientific research institute with the highest level of inspection and certification of materials in China.
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The inauguration of the laboratory has enabled many of the materials inspections that have been completed so far in the German headquarters to be carried out in Beijing, which greatly simplifies and accelerates the certification process for parts and components produced by Shanghai Volkswagen and FAW-Volkswagen using domestically produced materials. 
Volkswagen: Cost Reduction, Auto Parts Inspection "Localization"
Established in China Center Laboratory, Chinese Partner Product Certification Process Simplified and Accelerated