VW will build Golf, Audi A3 in China image

After about a year of deliberation, FAW Group and its partner Volkswagen’s pet project, the Nanhai factory in Foshan, Guangdong, has finally gained the National Development and Reform Commission’s approval, China Business News reported today.

FAW and Volkswagen agreed on the Nanhai factory project in June 2010, and have been waiting for official approval since then. The two partners are yet to comment on this information.

Construction work on the planned factory was originally scheduled to commence in February this year, Gasgoo.com said, citing the report. Work will now start at the end of this year, followed by start of production in 2013.

The seventh-generation Golf and Audi A3 will be among the first products the new plant will make, according to the Nanhai government’s Web site.

Volkswagen also has a joint venture with Shanghai Automotive Industry Corp.

In the first four months of 2011, Volkswagen’s China sales rose 28 percent year-on-year to 571,464 vehicles, according to J.D. Power.