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Volkswagen Gets Approval to Build Two More Plants in China

China has a big part to play in any automaker’s global ambitions, but this is especially true for Volkswagen Group. During the German-Chinese government consultations in Berlin, final approval was granted today for VW plants to be built at Foshan and Yizheng, as the Chairman of the Board of Management of Volkswagen signed appropriate declarations with the Presidents of the Chinese partner organizations.

The factory at Yizheng, in Jiangsu Province in eastern China, is to be developed together with partner Shanghai Volkswagen, and the plant at Foshan, in Guangdong Province in southern China, will be built together with the FAW-Volkswagen joint venture.

“China is already the world’s largest sales market for automobiles and further substantial growth is expected in the future,” Winterkorn said on the occasion of signing the contracts at the Federal Chancellor’s Office in Berlin. “The Volkswagen Group intends to play a major role in shaping this growth with new environmentally compatible models and the expansion of local production capacity. Our new plants show that Volkswagen remains a strong motor for the Chinese automobile industry.”

Each of the two plants will be designed for an annual capacity of 300,000 vehicles and production is due to start in 2013. In addition, plans have already been announced to expand production capacity at each of the existing Nanjing and Chengdu plants to between 300,000 and 350,000 vehicles per year.

“The new factories are a key element in our plans to increase annual production capacity in China to three million vehicles in the medium term together with local partners,”
said Dr. Karl-Thomas Neumann, President and CEO of Volkswagen Group China in Berlin.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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