Seat will manufacture cars in China

It is no secret that the Chinese market will dominate, sooner or later, the world market if growth rates keep advancing at half the pace they are advancing now. Last year car sales rose by 40%, an excessive frenzy that only China’s enormous population, which almost doubles that of the 27-nation Europe, can afford as it enters higher levels of income and well-being.

Seat also wants its share of the cake as it begins to manufacture cars in Guangzhou, a very important industrial city in the country. Production will be 200,000 cars a year and it comes to reinforce the group’s Volkswagen plans to increase its global sales, given the country’s high demand.

Through the joint venture between Group Volkswagen and the local manufacturer FAW is how it will be able to sell in the country, a market still very heavily regulated by the state but which is gradually opening up. The destination is the local market, from where the suppliers will also come, except for the engines, and perhaps in the near future sales will expand to the rest of Asia.

Another secondary piece of good news is that work at the Martorell factory could increase slightly as a consequence of this expansion, but that remains to be seen. It has been ratified as the factory for 100% local production in Barcelona, so it is all good news for Catalan workers.

Source: | Diariomotor