VW inaugurates new vehicle plant in China image

VW Ag., Europe’s largest carmaker has announced the inauguration of the new plant of Shanghai Volkswagen (SVW) in Yizheng, eastern China, where the automaker will build the new Polo and Skoda vehicles.

Yizheng plant, located about 300 km to the North-West of Shanghai is designed for an annual production capacity of 300,000 vehicles and will create about 3,700 new jobs in the region, VW said.

In 2011, Volkswagen delivered 2.26 million vehicles to customers in China. In the first half of 2012, deliveries rose by 17.5 percent to about 1.30 million units.

The Wolfsburg-based manufacturer said that worldwide demand for cars increased in the second quarter in the US, China, Russia and India, and would rise again in the second half of the year – but at a slower pace.

Volkswagen’s second-quarter net profit rose 20% to 5.61 billion ($6.76 billion) and surged 40% to €8.77 billion in the first half of the year, boosted by a book gain related to option valuations on Volkswagen’s stake in sports car maker Porsche Automobil Holding SE’s and higher profit generated from the business.