Volkswagen Announces Major Chinese Expansion

China is undoubtedly a key market for several carmakers out there and Volkswagen makes no exception to this rule. The German brand has just announced that it will invest no less than 4 billion euros in new products and the expansion of production capacities in China, with most of the money to be sourced from Volkswagen Group’s local joint ventures.

Specifically, the company is aiming to boost production of both the Nanjing and Chengdu plants to between 300,000 and 350,000 units by 2012 and create additional production facilities with body, paint and assembly shops.

"For the Volkswagen Group, China is one of the most important markets in the world We are already well-positioned there with a broad product portfolio," said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft. "Demand for our models is growing so dramatically that our capacities in China are no longer sufficient. Our investment decision has laid the foundations for continuing the Group's success in China in the future," Winterkorn added.

"In China, we will see clear double-digit growth in 2009 and expect to remain the market leader in the future. Volkswagen Group China is well on the way to reaching the target of doubling sales to two million vehicles laid down in our Strategy 2018 earlier than planned," commented Dr. Winfried Vahland, President and CEO of Volkswagen Group China.

Volkswagen said that it expects the Chinese plants to roll off their assembly lines three new models in 2012, beside the three ones launched this year: Golf, Passat New Lingyu and the Skoda Superb. At this time, models manufactured by the Volkswagen Group in China include the Volkswagen Polo, Lavida, Santana, Santana Vista, Passat New Lingyu, Touran, Golf, New Bora, Jetta, Sagitar and Magotan, as well as the Škoda Fabia, Octavia and Superb and the Audi A4L and A6L.