China is growing fast for Volkswagen AG which is to build two new
vehicle plants together with partner FAW.
“China has become our largest and most
important market. To satisfy the demands of our customers in the country, we
are engaging in a further substantial expansion of our capacities in China
together with our Chinese partner FAW-Volkswagen,” said Prof. Dr. Martin
Winterkorn, chairman of the board of management of Volkswagen AG at a ceremony
to sign the declaration of intent.
The two new vehicle plants are to be built
step-by-step on the East coast of China in the cities of Qingdao in Shandong
Province and Tianjin.
The decision in favour of these two
locations was taken together with the joint venture partner FAW. The key site
factors were high qualification levels and the available infrastructure.
Furthermore, Tianjin is the location of a
new production plant for dual-clutch gearboxes (DSG) for Volkswagen in China
and due to be inaugurated at the end of 2014. Together, the two partners are to
invest €2 billion in the expansion of production capacities.
“With these investments, Volkswagen is
clearly expressing its commitment to the Chinese market. Following two decades
of successful cooperation, Volkswagen will further intensify its strategic
partnership with FAW with a view to bringing innovative, sustainable mobility
solutions onto the Chinese market,” said Prof.
Dr. Jochem Heizmann, member of the board of management of Volkswagen AG.
Volkswagen
has been active on the Chinese market for 30 years and is one of the Western
pioneers of the automobile industry in the country. Together with its two joint
ventures FAW-Volkswagen and Shanghai-Volkswagen, the Group delivered 1.51
million vehicles between January and May 2014, representing a rise of 17.7 per cent
compared with the corresponding period of the previous year.
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