VW invests in Foshan plant
By Jin Jing |
June 10, 2010, Thursday
|
Print Edition
Print Edition
VOLKSWAGEN AG yesterday announced it will invest 500 million euros (US$597 million) in a new plant in Foshan, Guangdong Province, as it expands in south China to compete with Toyota, Honda and Nissan.
Volkswagen's Chinese venture with FAW Group Corp will invest in the plant, located in Nanhai District of Foshan, with an annual output of 300,000 units of VW and Audi cars by 2013.
The German auto giant aims to sell more than 2 million units annually in China over the next few years after it sold 1.4 million units last year, Martin Winterkorn, chairman of the Volkswagen's Board of Management, said yesterday at the signing ceremony.
Analysts expect the new plant in Foshan to play a key role for Volkswagen's strategy in south China. The car maker aims to boost sales from 150,000 units to 500,000 units in south China within three to five years and to raise market share to 19 percent from 12 percent in 2008.
At the end of April, Wolfsburg-based Volkswagen announced an extra 1.6-billion-euro investment in China to build two new plants and add new models in the world's largest auto market.
Volkswagen, the second-largest international auto maker in China after General Motors, and its Japanese rivals are competing for the rapidly growing market in south China.
Nissan has just announced plans to spend 5 billion yuan (US$732 million) to expand its plant in Guangzhou, which will make as many as 600,000 vehicles a year by 2012, up from 430,000 units now.
Honda, which has two plants in Guangzhou, also wants to boost output by one third to 830,000 units by the second half of 2012.
Volkswagen's Chinese venture with FAW Group Corp will invest in the plant, located in Nanhai District of Foshan, with an annual output of 300,000 units of VW and Audi cars by 2013.
The German auto giant aims to sell more than 2 million units annually in China over the next few years after it sold 1.4 million units last year, Martin Winterkorn, chairman of the Volkswagen's Board of Management, said yesterday at the signing ceremony.
Analysts expect the new plant in Foshan to play a key role for Volkswagen's strategy in south China. The car maker aims to boost sales from 150,000 units to 500,000 units in south China within three to five years and to raise market share to 19 percent from 12 percent in 2008.
At the end of April, Wolfsburg-based Volkswagen announced an extra 1.6-billion-euro investment in China to build two new plants and add new models in the world's largest auto market.
Volkswagen, the second-largest international auto maker in China after General Motors, and its Japanese rivals are competing for the rapidly growing market in south China.
Nissan has just announced plans to spend 5 billion yuan (US$732 million) to expand its plant in Guangzhou, which will make as many as 600,000 vehicles a year by 2012, up from 430,000 units now.
Honda, which has two plants in Guangzhou, also wants to boost output by one third to 830,000 units by the second half of 2012.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
