Volkswagen gets approval to build two plants in China

Article by Christian Andrei, on June 28, 2011

During the German-Chinese government consultations in Berlin, the Volkswagen Group obtained final approval to build two further plants in China, specifically in Foshan and Yizheng.

As part of its long-term growth strategy in the biggest market for passenger vehicles in the world, the company can now proceed with the building of the plants as planned.

The chairman of the Board of Management of Volkswagen Aktiengesellschaft, Prof. Dr. Martin Winterkorn, and the Presidents of the Chinese partner organizations have signed the appropriate declarations.

The plant at Yizheng will be developed together with partner Shanghai Volkswagen while the one at Foshan will be erected with the FAW-Volkswagen joint venture. During the summer of 2010, the first documents for the development of the two locations were signed.

During the signing of contracts at the Federal Chancellor's Office in Berlin, Winterkorn said that further substantial growth in China is still expected in the future.

He also revealed that the Volkswagen Group plans to play a major role in shaping this growth with new eco-friendly models and the expansion of local production capacity. The company’s new plants show that it remains to be a “strong motor” for the automobile industry in China, Winterkorn added.

Topics: vw, china, factory

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