VW signs contracts for new plant in China

As part of the Volkswagen’s long-term growth strategy for the Chinese market, the German brand is set to build a new vehicle production plant in Yizheng, Jiangsu Province. Today, Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft, responsible for ‘Group Production’, and Dr. Winfried Vahland, President and CEO of Volkswagen Group China signed the contracts with representatives of Shanghai Volkswagen. The new plant should be ready to start production in 2013 and will have a a maximum annual production capacity of 300,000 vehicles.

At the signing ceremony Heizmann explained that China will play a very important role in the future growth of the Volkswagen Group. “Together with our Chinese partners we plan to double our production capacity to three million vehicles by 2013/14. The new plant in Yizheng is a central element of these plans. The Volkswagen Group is thus laying the foundations for consolidating and expanding its leading position in China", said Heizmann.

In the first half of 2010, Volkswagen Group China has exceeded deliveries in the record year of 2009 by 45.7 percent so according to Vahland “This strong performance further confirms the success of our young and efficient model range. The new plant in Yizheng makes sure we will be able to meet growing demand from our Chinese customers in future, too.”

Volkswagen’s focus in the Chinese automotive market has recently been increased, when in April the German Group added a further 1.6 billion euros to its investment program for China for the period to 2012, making a total of 6 billion euros. Some of the funds will be used to complete the objective to double local production capacities by 2013/14. To achieve it the annual capacity at both the Nanjing and Chengdu plants will be increased to 300,000 to 350,000 units and two new factories will be built. Besides the Shanghai Volkswagen plant in Yizheng, the Volkswagen Group and FAW-Volkswagen will be constructing a new vehicle production plant in Foshan, Southern China.