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FAW-VW South China base annual capacity up to 600,000 units with completion of Foshan plant

Monika From Gasgoo| June 25 , 2018 16:22 BJT

FAW-VW South China base annual capacity up to 600,000 units with completion of Foshan plant

Shanghai (Gasgoo)- FAW-Volkswagen announced the completion of its Foshan plant's second phase on June 22, which is expected to enhance the total production capacity of its South China base to 600,000 units on an annual basis.

Reportedly, the automaker will invest an aggregate of RMB 10 billion in the second phase of Foshan plant by 2020. Besides, the trial model of the Audi Q2L has already rolled off the production line in the new plant, which has a capacity of 110,000 units per year for this model.

The South China base was built in line with Volkswagen's “South Strategy” in China, which was initiated in 2009 to compete with Japanese vehicle brands in China's southern market, covering 6 provinces and autonomous regions like Zhejiang, Jiangxi, Guangdong, Guangxi and Hainan, etc. In addition, FAW-Volkswagen has currently launched 6 series of tailed models in South China area, including Jetta, Bora, Sagitar, Golf, C-TREK and Magotan, which allow customers to select proper models with prices as same as the existing models.

FAW-Volkswagen has by far completed three plants, achieving a capacity expansion of around 750,000 units. In May this year, the automaker claimed that its East China base, namely the Qingdao plant, has been completed with a planned capacity of 600,000 units per year. Involving an investment of RMB 14.4 billion in total, the first phase of the Qingdao plant chiefly focuses on manufacturing SUV and new sedan models, possessing a capacity of 300,000 units per year. Earlier this year, FAW-Volkswagen's Audi Q plant in its Changchun base was finished, with a predicted capacity of around 150,000 vehicles annually.

The Sino-German company currently has vehicle assembly plants in China's Changchun (capital of Jili province), Chengdu (capital of Sichuan province), Foshan (a city of Guangdong province) and Qingdao (a city of Shandong province). In 2017, the vehicle plants in Changchun, Foshan and Chengdu output a total of 1,980,000 vehicles.

Reportedly, FAW-Volkswagen will finish building 4 new plants this year. Once they are all put into operation, the company's annual planned capacity will be up to 2.55 million units. 

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