Shanghai, June 10 (Gasgoo.com) "In terms of setting up a factory in Guangdong, we are still in the middle of discussion. As for expanding production capacity, we haven't decided yet. So we can't tell you whether it is in Guangdong or Nanjing," A top official from Shanghai VW revealed in an interview.
When Shanghai VW will march to the South has become a hot topic in the industry as FAW VW signed the South China Sea project yesterday. An insider told the media that Shanghai VW has no plan to expand to the South China area.
Previously, Volkswagen China gave a vague expression when it announced its South China strategy. It didn't tell the amount of investment and the place of investment for the north and south VW respectively, only a total amount.
Volkswagen China's unilaterally announcement took Shanghai VW and its Chinese parent company SAIC Motor by surprise. "In fact, when Winfried Vahland, CEO of Volkswagen Group China, announced its investment plan in Guangdong, he only referred to FAW VW, not its both joint ventures," media reported.
Since it took over Nanjing Auto in 2007, for two years, Shanghai VW achieved its potential capacity through the fourth factory in Nanjing. Whether the next step is to further expand its Nanjing base or follow FAW VW's suit is indeed a hot issue that needs to be solved immediately.
Industry experts hold the opinion that marching to Guangdong isn't an optimal choice for Shanghai VW, given Nanjing government's sincerity and the high maturity level of the auto parts supplier chain.
