The FAW-Volkswagen event recently kicked off the AU380/AU381 CN transformation project in Qingdao, Shandong province, and is expecting a direct investment of nearly 1 billion yuan ($144 million) and creating more than 1,000 jobs.

The FAW-Volkswagen event kicks off the AU380/AU381 CN transformation project in Qingdao on April 26. [Photo/Qingdao News]

This technological transformation project of new car models is an important measure for FAW-Volkswagen to respond to the national policy of developing new energy, energy-saving and low-consumption vehicles, improving product strength and maintaining the market leader position, according to a manger from the company.

After the Qingdao automobile industry exceeded the 100-billion-yuan scale, industrial development has entered a new stage, and the continuous upgrading of new vehicles is the most direct and powerful strategy for promoting the advancement of the Qingdao automobile industry.

After the completion of the project, Qingdao's automobile industry is expected to be rejuvenated with the promotion of industrial transformation and upgrading, and it plans to further improve the competitiveness of the Qingdao automobile industry, according to Qingdao officials.

Employees work at the assemble line at the FAW-Volkswagen East China Base in Jimo district. [Photo/Qingdao News]

Since it was put into operation in May 2018, the FAW-Volkswagen East China Base in Jimo district in Qingdao has produced more than 1.15 million vehicles in total, with an output value of more than 110 billion yuan.

In recent years, Jimo district has made great efforts to build an industrial chain and supply chain of automobiles and spare parts. At present, there are more than 400 automobile enterprises in the district, which have injected new impetus into local economic development.