Shanghai Volkswagen Automotive Co. has been granted approval by the Chinese government to construct a plant in the northwest China region of Xinjiang, according to the Web site of the Xinjiang government. The investment to build this facility in the suburb of Urumqi, the capital of Xinjiang, will amount to 2 billion yuan ($315 million).
It’s expected to begin production in 2013 and it will have a capacity of 50,000 vehicles annually. Last Wednesday, German daily Frankfurter Allgemeine Zeitung released a report saying that this new plant will assemble mid-sized cars.
Volkswagen Group has set a target to sell over 2 million cars in the country this year. Volkswagen has nine factories in China when counting those with local partners SAIC and FAW.
They have a total production capacity of 1.9 million cars each year. The Ningbo Evening News said that the government has given its approval for Shanghai Volkswagen to build a plant in Ningbo of east China's Zhejiang province.
Two other facilities are currently being constructed. An assembly plant is being built by FAW Volkswagen in Foshan in south China's Guangdong province. At the same time, Shanghai Volkswagen is building one in Yizheng in east China's Jiangsu province.
From the start of the year through October, Volkswagen sold 1.9 million Volkswagen, Audi and Skoda vehicles in China, making up almost 18% of the passenger vehicle sales in the country. [source: Autonews]