Volkswagen Opens Foshan Plant in China With 300,000 Units Annual Capacity image

Today, September 25th, Volkswagen has opened a new plant in Guangdong province, China, part of its plan to surpass Toyota and become the largest automaker by sales.

The facility in Guangdong was built under a JV with FAW CAR Co. and is located in the city of Foshan. The plant’s initial production capacity is 300,000 units annually, but the German automaker said it will double production in the second phase.

Three months ago VW announced its plans to boost production in China by 60% in the following three years. VW’s sales in the region increased jumped almost by 50% in 2012 and its passenger vehicle market share in the region jumped 3 percentage points so far this year to 22%.

The Foshan plant will manufacture the new Golf model vehicles and will create 6,500 new jobs during the first phase. From January to August, VW delivered 2.05 million cars in China, up 17.9% compared with the same period last year.

In April the German automaker said it will expand its model line-up in the Asian country by 29% in the next two years. VW plans to introduce 90 vehicles in the world’s largest auto market, from the current 70 models.

Source: Bloomberg