Volkswagen Increases Production at the Guangdong Plant, China image

Today, September 25th, Volkswagen is expected to announce its plans to boost production at a major plant in China, part of the automaker’s strategy to grab more market share in this country.

Today, the German automaker will officially open a plant located in Foshan city, Guangdong province, China. The plant is operated under a JV with FAW Group Corp and has a production capacity of 300,000 vehicles annually. The automaker recently started building here its redesigned Golf vehicle.

Volkswagen, which sells in China vehicles from its Skoda, Audi, Bentley and Lamborghini brands, is expected to present details on its strategy to double production capacity at the Foshan plant, according to anonymous sources. The sources also added that VW might also start manufacturing here the Audi A3 hatchback at the beginning of next year.

In 2009 VW launched its strategy called “South China Strategy” aimed at deepen its presence in the country. The automaker has increased the number of its retail stores, focusing more on the Guangdong region, which is a large auto-selling province.

VW’s expansion strategy in China is part of its wider plan to boost annual production capacity in the region to 4 million units by 2018. In 2012 the automaker increased its sales in the Asian country by 18.5% to 2.6 million units.

Source: Reuters