Vw plans to invest $14.06 billion in its Chinese operations by 2015

Article by Christian A., on December 1, 2010

Volkswagen AG, in a statement on its Website, says that it plans to invest EUR51.6 billion (about $61.5 billion) in its worldwide automotive operations over the next five years.

For its Chinese operations, VW plans to invest CNY96 billion ($14.06 billion) before 2015. Such an investment is meant to maintain VW's position as China's biggest international automaker and is one step in its goal to be the world's biggest automaker by 2018.

The funds for the investment in China, which are not part of the VW's global total, will be derived from the cash flow generated by VW's Chinese joint ventures.

J.D. Power and Associates states that, in the first nine months of 2010, VW's group sales in China totaled 1.4 million units, compared to General Motor Co.'s sales of 798,000. While VW's statement did not elaborate on its proposed China investment, VW has already unveiled several projects.

In 2010, VW drafted a four-year, EUR6 billion plan to build two new Chinese assembly plants, to double its production to 3 million units and to add new models.

VW is presently China's best-selling brand and Audi is China's most popular luxury brand. VW is also beginning to build its Skoda cars in China.

Skoda's CEO Winfried Vahland recently told a Skoda union newsletter that he aims to raise annual China production to 500,000 units, up from 131,800 units in 2009. VW presently maintains two joint ventures with the FAW Group and Shanghai Automotive Industry Corp. [via autonews - sub. required]

Topics: vw, china, investment

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries