CHANGCHUN - China FAW Group Corporation, a leading Chinese automaker, and Volkswagen AG have agreed to extend their joint venture for a further 25 years, the Chinese company announced here Tuesday.

Under an agreement signed in Wolfsburg, Germany, on Monday, FAW and Volkswagen said they would continue their contract from 2016 to 2041, an FAW spokesman said.

FAW President Xu Jianyi and Volkswagen CEO Martin Winterkorn signed the agreement.

The two companies agreed to expand their cooperation by developing new models, new-energy cars and financial services, according to the spokesman.

The FAW-Volkswagen joint venture was set up on Feb 6, 1991. It now has manufacturing bases in Changchun, Chengdu and Foshan.

By the end of last year, the joint venture had put out more than 5 million vehicles.

Founded in the northeastern Chinese city of Changchun in 1953, FAW employs 118,000 people around the world and sells cars in more than 70 countries and regions.