After many years of negotiations, an agreement signed in Beijing on 10 October 1984 opens the path to the establishment of the "Shanghai-Volkswagen Automotive Company, Ltd.". Volkswagenwerk AG has a 50% share in the joint Chinese-German enterprise, which begins producing the Santana on September 1. A new paint shop would open in October 1989. The following year engine production would begin and the press shop start operations. In the course of expanding its capacity, Shanghai Volkswagen developed into China's largest and most modern passenger car plant.