Volkswagen announces the creation of a new plant in China

The German brand continues to expand its presence in this emerging market, which is so important to the automotive industry, and today it has done so by confirming that it will open a factory in Foshan, in the Guangdong region in the south of the country. Present at the signing of the construction contracts were the Chairman of the Board of Management of Volkswagen, Martin Winterkorn, the counterpart from the brand’s Chinese division, Dr. Winfried Vahland, and members of the FAW-Volkswagen alliance.

The manufacturer from Wolfsburg is one of those with the most privileged position in China, as demonstrated by its 48% growth in sales so far in 2010 compared with the previous year. For this reason, as Winterkorn stated at the event, the goal is to significantly increase production capacity in that country, and to this end this Foshan plant, the tenth of Volkswagen in China and the sixth of FAW-Volkswagen, will contribute to achieving it.

Specifically, its manufacturing volume will be a maximum of 300,000 vehicles per year when it starts operating in 2013. It will provide work for 4,000 people, and its construction, which will begin at the end of 2010, will cost 520 million euros, which will be funded by FAW-Volkswagen. This new factory will make it possible to reach the target of doubling the brand’s production in China to 3 million cars per year in 2013 or 2014, as Martin Winterkorn explained.

In addition to opening new production plants, Volkswagen has invested 6 billion euros in developing up to 20 models new or modified specifically for China, of which 7 will be launched in that market this year. It also plans to make new electric models in 2013 or 2014. Currently, the brands of the Volkswagen group sold in China are Audi, Škoda and Volkswagen.

Source | Volkswagen