China: VW gets approval for new plant in Guangdong province image

Finally, the National Development and Reform Commission (NDRC) has approved FAW/Volkswagen’s new plant in Guangdong province, a year after the nation’s top economic planner received the proposal.

The approval on the facility was kept on hold by NDRC due to tighter regulations that forbid joint ventures from building factories in new locations unless they produce self-developed brands and new-energy vehicles.

Sources say that the approval has nothing to do with the recent launch of the company’s self-owned Kaili brand. The birth of the Kaili brand only proves they are capable of making electric vehicles and developing a self-owned brand. It is still undetermined whether Kaili will be put into production.

According to some insiders, FAW would first like to concentrate on building VW vehicles, such as the seventh generation Golf, with Audi production to be carried on later.

“Audi’s production lines are very different from VW’s,” the source said.