Volkswagen has plans to increase the sourcing of components from China by ten times this year compared to 2005.

Volkswagen China Group CEO Winfried Vahland said it expects to purchase components worth US$1bn from China, a steep climb from US$100m last year.

The company now has more than 800 parts suppliers in China and Vahland said that whilst extra negotiations had commenced, any deals brokered would have to meet Volkswagen safety measures.

Vahland said: "Similar to our competitors we are analysing the market for potential export-parts.

"The goal of the Volkswagen Group is to sign the contracts for a yearly turnover greater than USD$1bn with parts from China, to be exported into the worldwide production network, as of 2006."