Volkswagen Plans to Build New Plant in Wuhan, China image

Volkswagen announced its plans to build a new plant in Wuhan, China with its JV partner.

Volkswagen and China FAW Group Corp are now in discussions with Wuhan’s city government concerning this project. As the German car maker plans to expand in the world’s biggest auto market, it also invested 170 million euro ($209.09 million) on April 23rd with Shanghai-based SAIC Motor Corp for a new factory in Urumqi, in western China. The plant is expected to manufacture 50,000 units annually from 2015.

Volkswagen entered the Chinese market 30 years ago, as the first overseas car maker. In 2011 it announced its plans to invest 14 billion euro on new facilities and products in China through its joint ventures. In June the company named Jochem Heizmann as the executive board member in charge of a special portfolio to oversee future expansion in China.

From January to June VW’s sales in China, including Audi and Skoda, were up 17.5% to 1.08 million vehicles. In April 2012 Volkswagen extended its JV with FAW, which began in 1991, by another 25 years. the two companies have assembly plants in the eastern cities of Changchun, Chengdu and Dalian.