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

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 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