VW pumps in extra US$2b investment
By Jin Jing |
00:50 UTC+8 April 27, 2010
|
Print Edition
Print Edition
VOLKSWAGEN AG yesterday announced it will invest 1.6 billion euros (US$2 billion) in China to build two new plants and increase its range of new models to meet growing market demand.
The latest injection is on the top of the 4.4-billion-euro spending through 2012 it unveiled last year and brings its total new investment in the world's largest auto market to 6 billion euros.
The new investment would help the German auto giant to maintain its market leadership in China and be a leader in advanced technologies, said Winfried Vahland, president and chief executive officer of Volkswagen Group China.
"We will reach our long-term target of doubling our sales to 2 million vehicles according to plan," he said.
Analysts said that with slack sales in Western markets, the robust Chinese auto market is of growing importance for global auto makers.
VW is the second-largest global auto maker in China after General Motors. Its first-quarter sales jumped 61 percent to 457,259 vehicles on Chinese mainland and Hong Kong.
VW's investment, which has been approved by its board of supervisors, would come from its two Chinese ventures with SAIC Motor Corp and FAW Group Co.
VW has reportedly been planning to locate two 200,000-unit plants in south China as it aggressively expands in the region. VW aims to boost sales from 150,000 units to 500,000 units in south China within three to five years and to raise its market share to 19 percent from 12 percent in 2008.
A Volkswagen Group China official yesterday declined to comment on possible sites.
The latest injection is on the top of the 4.4-billion-euro spending through 2012 it unveiled last year and brings its total new investment in the world's largest auto market to 6 billion euros.
The new investment would help the German auto giant to maintain its market leadership in China and be a leader in advanced technologies, said Winfried Vahland, president and chief executive officer of Volkswagen Group China.
"We will reach our long-term target of doubling our sales to 2 million vehicles according to plan," he said.
Analysts said that with slack sales in Western markets, the robust Chinese auto market is of growing importance for global auto makers.
VW is the second-largest global auto maker in China after General Motors. Its first-quarter sales jumped 61 percent to 457,259 vehicles on Chinese mainland and Hong Kong.
VW's investment, which has been approved by its board of supervisors, would come from its two Chinese ventures with SAIC Motor Corp and FAW Group Co.
VW has reportedly been planning to locate two 200,000-unit plants in south China as it aggressively expands in the region. VW aims to boost sales from 150,000 units to 500,000 units in south China within three to five years and to raise its market share to 19 percent from 12 percent in 2008.
A Volkswagen Group China official yesterday declined to comment on possible sites.
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