Volkswagen may expand production of its new mid-sized sedan to China

Article by Christian Andrei, on October 5, 2010

According to the latest reports, it appears that Volkswagen may expand production of its upcoming mid-sized sedan designed for U.S. customers also in China in order to attract more buyers.

China is considered world’s biggest auto market, and in order to reach its goal in becoming world’s biggest car manufacturer, the Chinese market is a key player for Volkswagen.

The new mid-sized sedan dubbed NMS (new midsize sedan) will carry a price tag of $20,000 and according to Volkswagen it will be built at firm’s new plant in Chattanooga, Tenn., and sold in the U.S. in the second half of 2011.

“We will see demand for this car growing in other countries such as China,” said Ulrich Hackenberg, head of Volkswagen's brand development. “Our production pattern allows us to transfer vehicles from one plant to another at relatively low effort.”

Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler admitted that China is Vw’s undisputed No. 1 priority, because a third of company’s profits come from there and it is currently a gold mine.

Regarding the new car, Vw hopes to sell 67,000 units per year in the United States. This number will be increased to 150,000 from 2012, in an attempt to return U.S. operations to profit no later than 2013. [via autonews - sub. required]

Topics: vw, china, sedan

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