Volkswagen Group yesterday was given the final approval for two build two additional plants in China, continuing its long-term growth strategy in the world’s largest market for passenger cars.
Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, today signed appropriate declarations together with the Presidents of the Chinese partner organizations.
The first of the two plants will be produced at Yizheng, in Jiangsu Province in eastern China, and will be developed together with partner Shanghai Volkswagen. The other plant will be built at Foshan, in Guangdong Province in southern China, with the FAW-Volkswagen joint venture.
“China is already the world’s largest sales market for automobiles and further substantial growth is expected in the future,” Winterkorn said. “The Volkswagen Group intends to play a major role in shaping this growth with new environmentally compatible models and the expansion of local production capacity. Our new plants show that Volkswagen remains a strong motor for the Chinese automobile industry.”
Each of the two plants will be designed to carry an annual capacity of 300,000 vehicles with production to start in 2013. Volkswagen has already announced plans to expand production capacity at each of the existing Nanjing and Chengdu plants to between 300,000 and 350,000 units per year.
– By: Omar Rana