FAW Volkswagen is one of China’s largest contributors of tax revenue, with the joint venture paying 24.3 billion yuan ($3.69 billion) in taxes in 2010.
International Finance News wrote that FAW-VW is one of the automobile industry’s largest contributors of tax revenue. FAW Volkswagen was also in the news recently for allegedly awarding its workers with a yearly bonus equivalent to 27 months’ salary.
The tax figures demonstrate the company’s strong market performance in the past few years. Last week the joint venture built its one millionth vehicle of the year, meeting its annual production target. In the first 11 months of the year, FAW-VW sold 960,000 vehicles in China. Passenger vehicle sales increased 11.6 percent compared to the same period in 2010, slightly above the industry average growth rate of 9.4 percent. In 2010, the joint venture sold 860,000 vehicles and is set to complete its sales goal for 2011 well ahead of schedule.
Other Chinese manufacturers have also contributed large sums in taxes last year. According to a recent announcement from Shenyang’s Ministry of Finance, Brilliance BMW contributed 27.6 billion yuan ($4.19 billion) in taxes last year, while Shanghai GM paid 27.3 billion yuan ($4.15 billion) in taxes.