Volkswagen to Build DSG Plant in China

Volkswagen has already emphasized that it wants to increase its Chinese operations in the near future and it appears the company is also considering building another DSG plant in Dalian, China. Sources close to the matter told Beijing Times that the factory is projected to open its doors in 2012, with an annual production of 500,000 units.

The company is reportedly negotiating with several parties, including FAW VW and Shanghai VW, on the possibility to set up a joint venture for such a production facility.

Earlier this year, Volkswagen announced that it will 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. Additionally, it hopes to bring three new models in China by 2012, beside the three ones that are already locally produced - Golf, Passat New Lingyu and the Skoda Superb.

"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.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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