Volkswagen to set up new DSG plant in Dalian, China image

Volkswagen seeks to build another DSG plant in Dalian, China. The plant is expected to be completed in 2012 and reach an annual production capacity of 500,000 sets, said an insider of VW China, Beijing Times reported today.

The report said that VW is now negotiating with its business partners on the details of investment scales. FAW VW and Shanghai VW are probability involved in the investment.

VW has set up DSG plant as a wholly-own company with a total investment of $100 million 2 years ago, close to the engine plant of FAW VW in Dalian.

This new construction plan is to realize VW’s previous promise that all their vehicles produced in China will cut fuel consumption of 2005 by 20%. Up to now, the average fuel consumption is 17% less than 2005.