Audi Opens Second Chinese Plant in September

Just like many other European and US carmakers, Audi is trying anything that's possible to expand its business in China, a country that ignored the economic chaos and maintained new car sales almost untouched. The brand with four rings announced it will open its second plant in China in September and thus, it will double its local output to 200,000 units.

A company representative confirmed the news for Reuters and revealed the plant will manufacture the Q5 and the A4L, a model based on the popular A4 sedan but featuring a longer wheelbase. The A4L is currently produced by Audi's first Chinese facility, also based in the northeastern city of Changchun.

Audi invested 1 billion yuan ($146.3 million) for the construction of the plant, which is also jointly owned by its Chinese partner FAW Group.

This isn't the only attempt of the German brand to get more from the Chinese market. The company will also expand its dealership network in the country to 210 stores in 100 cities by 2012. Audi currently has 146 authorized dealerships in China.

As for the sales, Audi posted its best first half-year in the company's history in 2009, with record deliveries in June: more than 13,000 cars were sold in a single month, up 28 percent compared to the same period of the last year. The company delivered a total of 3,247 units of A4L in June, raising the January - June figures to 13,654.

“This sales record shows us that we’ve made the right choices for the Chinese market, and that our model strategy is matched to the tastes of the Chinese customer,” said Peter Schwarzenbauer, Member of the Board of Management for Marketing and Sales at Audi AG.