Wolfsburg, Germany – Volkswagen will build a new plant in southern China, with a planned capacity of 300,000 vehicles per year. The plant will be built in Foshan, in the Southern Chinese region of Guangdong with the company’s Chinese partner FAW-Volkswagen.
“China has become the Volkswagen Group’s largest and most important sales market,” said Prof. Dr. Martin Winterkorn, chairman of the management board of Volkswagen AG. “We intend to continue above-average growth side by side with our partners. With our unprecedented investment program, we intend to double our capacities in China to three million vehicles per year by 2013/2014.”
Volkswagen is investing about €520 million in the project, which is expected to begin construction in late 2010 and commence production in mid-2013. It will be a complete production facility, including press shop, body shop, paint shop and assembly unit, and will employ about 4,000 workers.
In the first five months of 2010, Volkswagen Group China sold about 778,000 vehicles, a 48 per cent increase over 2009. With partners FAW-Volkswagen and Shanghai Volkswagen, the company has a total of nine plants in China, which produce 20 Volkswagen, Škoda and Audi models. The new plant will be the sixth facility of FAW-Volkswagen in China and the first in Southern China.
The Volkswagen Group has invested a total of €6 billion into its Chinese facilities and will launch seven new or modified locally-produced models on the local market this year. It plans to introduce a total of over 20 new models by 2012, and to begin production of electric cars in China in 2013/2014.