Volkswagen AG plans to construct a new manufacturing facility in China, its tenth in the country. The facility will be built in Foshan city in the Guangdong Province under FAW-Volkswagen, a joint venture firm among First Automobile Works Group, Volkswagen AG, Audi AG and Volkswagen Automobile Investment Company. The new facility will cover an area of 170 acres, and is expected to be operational by mid-2013, with an annual production capacity of 300,000 vehicles. The estimated investment in the project is around $662 million, which will mostly be funded by FAW-Volkswagen.  The decision has been taken taking into consideration the fact that China is the largest and the most important market for the Volkswagen Group. Moreover, the new facility will help the company to increase its production progressively till 2013–14 to reach over three million units. Along its strategic plans for the Chinese markets, the company will increase its investment in the country from €1.6 billion to €6 billion, focusing on increasing its production capacity in the region. |
