Volkswagen expands interests in China market
Volkswagen AG had laid out plans to increase the capacity of a key plant in Southern China. This is the way the top European carmaker moves to increase its market share in Asia as against the Japanese.
Last Wednesday, Volkswagen would open a new plant in Foshan city located in southern Guangdong province. The company operates under a venture agreement with FAW Group, the state owned automaker. The plant is able to produce 300,000 vehicles per year and had recently started to manufacture the new version of the Volkswagen Golf car.
Volkswagen, whose model portfolio includes the Audi, Skoda, Lamborghini and Bentley brands in China. The plans are to double the production of the plant located in Foshan, according to a Reuters report citing anonymous sources. The plant would also be producing the Audi A3 hatchback by 2014.
The expansion of the production is based on an agreement signed last May between the two companues. The goal is to have the plant produce 600,000 vehicles a year after an investment worth CNY15.3 billion or USD2.50 billion.
The officials of both Volkswagen and FAW were unavailable to make a comment on the news report.