Volkswagen will build new plant in China to meet the demand

Article by Christian Andrei, on August 25, 2010

As the car demand in China rises, Volkswagen plans to double production capacity in the country by constructing a new plant in southern China, more specifically, in the Foshan, Guangdong province. According to VW's statement, this new plant will have a capacity to build 300,000 vehicles each year and will start operations in 2013.

Within four years, VW plans to double its production capacity in China to 3 million vehicles with its 6 billion euros ($7.2 billion) investment. Meanwhile, Daimler AG, the world's second-largest luxury carmaker, last month disclosed plans to build an engine factory in China as part of a 3 billion-euro investment.

Daniel Schwarz, an analyst at Commerzbank AG in Frankfurt, said that VW is doing this in an attempt to catch up in the south where they currently aren't as strong as further north. He explained that in the mass segment, the company has to accomplish the value creation inside China.

Last month, China's passenger-car deliveries rose by 26% from a year earlier to 1.04 million units, according to the China Association of Automobile Manufacturers.

For the first five months of the year, sales increased 55% to 5.68 million units. VW said that sales in the country through the end of May climbed by 48% to a groundbreaking 778,000 vehicles.

Topics: vw, china, sales

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016