China’s First Automobile Works (FAW) and Volkswagen said they would jointly invest CNY15bn to build an auto plant in Chengdu, capital of Sichuan province.
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The plant is expected to create thousands of jobs. It will have a planned annual output of 600,000 and will make the latest version of the Volkswagen Magotan, the local version of the Passat. The firms didn’t announce how the investment would be divided, Sinocast noted.
The new investment was made in an effort to support reconstruction in Sichuan. Volkswagen China said the Chengdu plant would serve as an important production base to achieve its 2m sales target in China by 2018.
Volkswagen entered China in 1984 and has invested EUR6bn there so far, according to the company.
The automaker has 13 joint ventures in China, including one between FAW and Volkswagen in Changchun, capital of northeastern Jilin Province, which was established in 1990.
