Editor's note:Volkswagen hired the National Aquatic Center, or Water Cube, to stage one of the most spectacular media events ever held in China - The Volkswagen Group Night in China. More than 1,800 Chinese and international guests watched performances by international artists and witnessed a lineup of the Volkswagen Group's passenger car brands including Volkswagen, Audi, Skoda, Bentley, Bugatti, SEAT and Lamborghini. Porsche also presented the latest model on the stage.

On the eve of the Beijing Auto Show, Christian Klingler, a management board member at Volkswagen AG, gave an exclusive interview to China Daily reporter Gong Zhengzheng about Volkswagen's vision for China in 2012 and beyond.

Q: By hiring the Water Cube, Volkswagen really made a "splash" on the eve of the Beijing Auto Show.

What are you trying to say to Chinese consumers?

A: The National Aquatic Center provided the perfect backdrop for the first Volkswagen Group Night in China.

The Water Cube's spirit of innovation mirrors Volkswagen's passion and commitment to the Chinese market.

China is the most important market for Volkswagen as well as its second home market and our success in China is built on solid and above all broad foundations.

Q: Auto sales around the world and in China shrank in the first quarter as slowing economic growth affected demand. Why did Volkswagen Group turn in such extraordinary results?

A: The company again reported record growth. In the first quarter of the year, the group delivered more than 2.16 million vehicles to customers worldwide.

That's an increase of 9.6 percent compared to the same period last year.

We not only achieved record deliveries but also reached new highs in product quality, and customer and employee satisfaction. But it's not just about sales.

Our goal is to be the most successful, fascinating automobile manufacturer in the world and the leading light when it comes to sustainability.

We aim to be No 1 by 2018 - both economically and ecologically. In China, Volkswagen was able to generate double-digit sales growth in the first quarter and we expect deliveries in 2012 to be above 2011.

We delivered more than 633,000 vehicles to Chinese customers during the first quarter.

The successful start shows that the investment plan - a record 14 billion euros ($18.2 billion) - by the end of 2016 has been the right decision for continuous growth.

Q: Were there any star performers?

A: Our strength is our multi-brand range of products, and each model is a star in its own right. We provide different cars for different people and that's why we continue to be successful in China.

In the first quarter, Volkswagen brand deliveries grew 12.5 percent compared to the same period last year with the Golf, Magotan, Tiguan and Polo leading the way.

Audi underlined its leading position in China's premium market with its most successful quarter ever.

Skoda has been experiencing continued strong growth in China with sales increasing to 59,200 units in the first quarter. This makes China the most important market for Skoda.

Newly launched in China, SEAT is another exciting brand. With worldwide sales of more than 80,000 units, the Spanish brand reported growth in the markets in Germany, the UK, and Mexico.

Q: What are Volkswagen Group's plans in China in 2012?

A: Volkswagen is now looking to tap inland markets following its successful South China Strategy that began in 2009.

When we started the South China campaign in conjunction with our two joint ventures, our market performance improved as a result of an improved dealership network and management system as well as diverse marketing activities.

We are making the same efforts in cooperation with our partners to boost the automobile industry in West China. We see huge market potential in the vast rural area and aim to benefit a great number of people there with improved mobility by offering them advanced and affordable cars.

As part of Volkswagen's strategy in West China, the Chengdu plant was put into production in October 2011 and reflects the company's ability to maintain sustainability of its development.

Q: What is Volkswagen's production capacity in China? Any plans to extend it?

A: Globally we will have 94 factories operating in the future. China plays an important role in our expansion. We currently employ 50,000 people, but this figure will grow to 85,000 because enthusiastic employees are our greatest capital.

We have set our sights on increasing production capacity in China to 3 million units, and took a giant step toward the target in 2011.

As the Chinese market continues to grow rapidly, Volkswagen aims to win the recognition of Chinese customers, but we do not have any announcement to make concerning higher capacity.

While we have full confidence in the growth of the Chinese market, we are clearly aware that the fulfillment of our target is dependent on the development of the market in the next five to 10 years.

Constant innovation and environmental responsibility are our biggest commitments to China.

The company firmly believes that the market will continue to grow and play a crucial role in the fulfillment of our 2018 strategy. We can say that, for the past three decades, the group has been the Chinese auto industry's most reliable partner.

Q: The world is demanding new and cleaner vehicles. What is Volkswagen doing to achieve this goal?

A: Innovation through sustainable development is the core value of our company, and this year we have raised the bar. We are adopting higher environmental standards and sustainability goals.

In the coming five years, the group will invest 62.4 billion euros ($81.1 billion), two thirds of which will be used to develop higher-efficiency models and powertrain technologies to achieve an even higher level of environmental friendliness.

Given the environmental concerns and ambitious emission reductions targets by the Chinese government, our goal to become the world's most ecological carmaker is a harmonious fit with government policy.

To achieve the aim, each generation of vehicles should be an average of 10 to 15 percent more efficient, while efficient technologies such as start-stop systems are to be rolled out as a standard in all new models.

Q: What is Volkswagen's plan for eco-friendly and new energy cars in China?

A: Volkswagen's BlueMotion technology, which emphasizes fuel efficiency, will play a key role in this plan.

BlueMotion vehicles represent the future direction of eco-friendly car technologies in China. Under the BlueMotion umbrella brand, Volkswagen gathers together innovative technologies and products that enable environmentally friendly mobility without compromising drivability or practicality.

The arrival of these new vehicles sets a new benchmark for Volkswagen's unremitting pursuing for sustainable means of transportation and fully demonstrates to Chinese consumers Volkswagen's sustained efforts and resolution to save energy and protect the environment.

Volkswagen will also produce new energy cars with its joint ventures in 2013 and 2014. Last April, the group launched its first electric car fleet at China.

The fleet provided free shuttle service for anyone who visited the China National Museum and took a national road show to five cities in China, including Chengdu, Hangzhou, Shenzhen, Changsha and Hong Kong.

(China Daily 04/23/2012 page16)