VW to Build New Plant in China

Taking the statements made by VW CEO Martin Winterkorn in July seriously, German carmaker Volkswagen has already began its "South Strategy" campaign, part of its "2018 Strategy". Long story short, the Germans are said to be eyeing, together with Chinese partners FAW VW and Shanghai VW, the opening of a new facility in the south of the country.

"To build a plant in South China has been determined. Volkswagen plans to announce its plans at Guangzhou auto show by Fan Ande, CEO of Volkswagen Group China," a source close to the matter was quoted as saying by Gasgoo. "As the layout of our production has impacted on us a lot in the South China market, we are determined to build a plant there."

With its sights set on taking down Toyota, Volkswagen's north and east Chinese production hubs are gearing up for the upcoming giants war with Toyota's facilities in Guangzhou, Changchun and Chengdu.

According to inside sources, the new plant will most likely be located in Dongguan Industry Park, Guangdong province. It is yet unclear what vehicles will be sourced from here.

This development is the first serious one after Volkswagen announced its plan back in July. At the time, Martin Winterkorn expressed his desire to make VW the number one carmaker of the world by 2018. The beachhead chosen for the task? China.

"China is currently a spotlight in the international automotive market," Winfried Vahland Volkswagen China president said. "The increase of our deliveries to customers has been in line with the market growth in China, which benefited from the effectiveness and the success of the Chinese government's incentive automotive policy."