Volkswagen AG acquires a second base in China. "FAW-Volkswagen Automotive Company, Ltd." is formed in Changchun, a joint venture which has grown out of the cooperation with the "FAW-Volkswagen Automotive Company, Ltd." after 1988. Volkswagen AG has a 40% interest in the new firm, with which the Group intends to improve its position in China and to assure it of an economical production base in Asia. The Jetta is initially assembled from imported parts, but by the end of 1994 a newly constructed plant with an annual capacity of 150,000 vehicles begins producing the Jetta. Two years later, transmission and engine production go into operation which supplies the Group within China and also exports to Germany.