Wolfsburg, Germany – The Volkswagen Group will continue its growth in China over the next few years, with plans to invest a total of €4 billion in new products and production capacity expansion between 2009 and 2011.
The investments will be financed from the cash flow of the Chinese joint venture companies. At plants in Nanjing and Chengdu, production is to be boosted to between 300,000 and 350,000 units at each facility by 2012.
“For the Volkswagen Group, China is one of the most important markets in the world,” said Professor Dr. Martin Winterkorn, chairman of the board of management of Volkswagen AG. “We are already well-positioned there with a broad product portfolio. Demands for our models is growing so dramatically that our capacities in China are no longer sufficient. Our investment decision has laid the foundations for continuing the Group’s success in China in the future.”
The company said it is on its way to reaching a target of doubling its sales to two million vehicles earlier than planned. It has long been the market leader in China and offers the broadest product portfolio of any automaker.
This year, it launched the new Volkswagen Golf, Volkswagen Passat Lingyu, and new Skoda Superb, and will introduce its seven-speed DSG transmission and TSI engines in future. Currently, models manufactured in China include the Volkswagen Polo, Lavida, Santana, Santana Vista, New Passat Lingyu, Touran, Golf, New Bora, Jetta, Sagitar and Magotan, along with the Skoda Fabia, Octavia and Superb, and the Audi A6L and A4L. In the first half of 2009, the company delivered 652,222 vehicles, up 22.7 per cent from the same period in 2008.