FAW-Volkswagen Automotive Co. will be producing subcompact vehicles at its new Nanhai plant in the Guangdong province of China. FAW-Volkswagen is a joint venture of Volkswagen AG and China FAW Group Corp.
Among the first products that the new Nanhai plaint will be producing, according to the website of the Nanhai government, are the Audi A3 and seventh-generation Golf and Audi A3. In June 2010, the joint venture announced the plans for the Nanhai facility.
This 500 million euro (4.7 billion yuan) plant, which is the 10th establishment of Volkwagen in China, will manufacture as many as 300,000 vehicles annually. The joint venture has yet to announce the schedule of the construction. Last May, the central government gave its nod on the FAW-Volkswagen's plan to manufacture an electric vehicle for the partnership's newly created brand Kaili.
However, it is not clear whether the vehicle will be produced at the Nanhai plant. In addition to FAW Group, Volkswagen is working with Shanghai Automotive Industry Corp. in another joint venture. In the first four months of this year, Volkswagen's sales in the Chinese market totaled 571,464 vehicles, an increase of 28 percent from the same period last year, according to data from J.D. Power.