Volkswagen is planning a fifth joint venture plant in China – with local partner FAW Group – to build Seat models, local media reports said.
The 21th Century Business Herald said the new facility would be in the southern Chinese city of Guangzhou. It cited an unnamed Volkswagen China executive.
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VW and FAW currently operate plants in Shanghai, Nanjing, Changchun and Chengdu, assembling VW and Audi brand models, some of which are exclusive to China. The automaker also has a JV with SAIC Motor making VW and Skoda models.
VW provided no information on a new plant but said it was eyeing a capacity boost for the Nanjing and Chengdu factories. Late last year, it unveiled a plan to spend EUR4bn (US$5.71 bn) in China by the end of 2011 to expand production capacity and R&D.
At the time, Winfried Vahland, president and CEO of VW’s China operations, also pledged to more than triple its sales in south China by 2018 as a main driver for its strategy to double sales to 2m units in the country by that time.
VW sold 1.4m cars in mainland China and Hong Kong in 2009, up 36.7%, making it the largest foreign carmaker in the country.
