Report – VW gets approval to build two more plants in China image

Sources that are familiar with the proceedings have told Reuters that Volkswagen has been granted approval for two additional factories in the country by China’s National Development and Reform Commission (NDRC).

The German automaker, Europe’s biggest and the world’s second largest looks set to gain a stronger foothold into China, the world’s single largest auto market – with the new couple of manufacturing facilities to be constructed in the eastern Chinese cities of Tianjin and Qingdao, the rumor coming from the sidelines of German Chancellor Angela Merkel’s state visit in the Asian country.

Volkswagen Ag plans to further develop its business in China by pouring into the country 18.2 billion euros ($24.83 billion) in the development of production facilities and models, working together with the automaker’s local joint venture partners.

The carmaker has production facilities already developed with state-owned FAW Group Corp in Changchun, Chengdu among others, while besides its Shanghai, Yizheng, Nanjing and Urumqi plants developed with SAIC Motor Corp, VW is also scheduled to add together with SAIC a brand new factory in Hunan, the provincial capital of Changsha in 2015.

Volkswagen, which last year managed to overcome General Motors and follow Toyota as the second largest automaker in the world, is aiming to keep its edge in China, the main driver of growth in the region, as it fights off General Motors or local players, like SAIC.

Via Reuters