Volkswagen is set to establish two new vehicle plants in China with an investment of €2bn, strengthening its production capabilities in the Asian country.
The company said that it is engaging in a further substantial expansion of capacities along with its joint venture partner FAW Volkswagen, to cater to domestic demands.
Volkswagen Aktiengesellschaft board of management chairman Martin Winterkorn said, "China has become our largest and most important market."
Volkswagen Group China president and CEO Jochem Heizmann said: "Following two decades of successful cooperation, Volkswagen will further intensify its strategic partnership with FAW with a view to bringing innovative, sustainable mobility solutions onto the Chinese market."
The facilities will be built in the cities of Qingdao in Shandong province and Tianjin.
Volkswagen has had presence in China for the past three decades. With its two joint ventures FAW-Volkswagen and Shanghai-Volkswagen, the company has to date delivered about 1.51 million vehicles between January and May 2014, a 17.7% rise compared with the year ago period.Source: http://manufacturing.automotive-business-review.com/news/volkswagen-to-establish-two-new-vehicle-plants-in-china-070714-4311591