FAW-Volkswagen Automobile Co. Ltd. is a large-scale joint venture passenger car manufacturer between FAW Group Corporation and Volkswagen AG, with share investments of 60% and 40% respectively. Volkswagen's 40% investment is divided between Volkswagen AG (20%), Audi AG (10%), and Volkswagen Automobile (China) Investment Co., Ltd. (10%).

FAW-Volkswagen Automobile Co. Ltd. was established in 1991, with the first A2 Jetta automobile rolling off the assembly line on December 5th of that year. Audi AG became a member of the partnership in 1995, and full scale production commenced in July of 1996. Government approval for construction of a new factory with an annual capacity of 150,000 units was received in 1997.

The company covers an area of 1.16 million square meters with a total investment of 11.13 billion Yuan and registered capital of 3.71 billion Yuan.

Following 10 years of continuous construction and development, the product offerings of FAW-Volkswagen have extended from the Jetta sedan to include the Bora IV, Caddy MPV, Golf IV, Magotan (European Passat), Sagitar (European Jetta), Audi A4, and A6L. The luxurious extended wheelbase A6L is produced exclusively by FAW-Volkswagen. Production capacity had reached an annual output level of 330,000 vehicles, 300,000 engines, and 180,000 transmissions.

On July 1, 2003, the board of directors of FAW-VW Automobile Co. Ltd. approved the construction of FAW-Volkswagen's Plant II, while simultaneously increasing the total investment from 11.13 billion Yuan to 23.435 billion Yuan (US $2.8 billion) with a registered capital increase from 3.71 billion Yuan to 7.812 billion Yuan (US $945 million). With the completion of Plant II, FAW-Volkswagen's production capacity was effectively doubled to 660,000 units annually.

Plant II consists of 4 production areas, including stamping, welding and sub-assembly, painting and sub-assembly, and final assembly. Plant II production currently focuses on PQ35 platform models which include the Caddy MPV, Golf IV, Magotan, and Sagitar.