VW's two southern plants approved by NDRC

Updated: 2011-07-04 16:36

By Xu Xiao (China Daily)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

BEIJING - German carmaker Volkswagen recently announced that its two new plants have been approved by the National Development and Reform Commission, the country's top economic planner.

VW's two southern plants approved by NDRC

A Volkswagen's production line in Chengdu. [Photo/China Daily]

The facilities will boost the auto giant's annual production capacity in the country to 3 million units, said Karl-Thomas Neuman, president and CEO of its China operation.

The new plants in Foshan, Guangdong province and Yizheng, Jiangsu province each has a planned production capacity of 300,000 units.

Related readings:
VW's two southern plants approved by NDRC VW: Child road safety 'cornerstone' for all
VW's two southern plants approved by NDRC VW joins Tsinghua for a view of the auto future
VW's two southern plants approved by NDRC VW to launch electric car
VW's two southern plants approved by NDRC FAW-VW: 20 years of harmony between people and their vehicles

Earlier reports said that the Foshan facility will require an investment of 13.3 billion yuan ($2.1 billion) in its first phase and is expected to enter production in 2013.

It will produce the latest-generation Golf, the company said. Discussions are underway with Audi to make some models of the luxury brand owned by Volkswagen.

"China has become the world's biggest auto market, and has even greater potential in the future," said Martin Winterkorn, board chairman of Volkswagen AG.

"Volkswagen Group will continue making advanced and environmentally friendly models in China. It will also expand production capacity," he added.


VW's two southern plants approved by NDRC

To meet growing demand, Volkswagen said it will invest 10.6 billion euros ($15.4 billion) from 2011 to 2015 to expand operations in the country.

In addition to the Foshan and Yizheng plants, the company said it will increase production at two other new plants - a SAIC Volkswagen plant in Nanjing and FAW Volkswagen facility in Chengdu - to 300,000 and 350,000 units respectively.

Over the first five months of 2011,VW's passenger vehicle sales in the country accounted for 13.7 percent of the market, according to statistics released by JD Power.

Volkswagen and its Chinese partners delivered 1.92 million vehicles in 2010.

It sold 548,400 vehicles in the first quarter of 2011, 19.9 percent more than the same period of 2010.

Its major competitor General Motors sold 686,000 vehicles in the period, a 10 percent increase over the same period last year.


Shining through

Chinese fireworks overcome cloudy times, pin hopes on burgeoning domestic demand

Pen mightier than the sword
Stroke of luck
Romance by the sea

European Edition


90th anniversary of the CPC

The Party has been leading the country and people to prosperity.

My China story

Foreign readers are invited to share your China stories.

Green makeover

Cleanup of Xi'an wasteland pays off for ancient city

Vice-President visits Italy
Sky is the limit
Quest for green growth