Reuters (Beijing) - Volkswagen plans to build an assembly factory in the central Chinese city of Wuhan with its local joint venture partner, Automotive News China reported on Monday, citing local media.
Executives of Europe's biggest car maker and China FAW Group Corp are in "intensive talks" with Wuhan's city government about the project, the online publication said, citing Hubei Daily newspaper.
A spokesman at VW's Wolfsburg-based headquarters couldn't be reached for comment.
The German manufacturer is increasing its footprint in the world's biggest auto market and said on April 23 it will spend 170 million euros ($209.09 million) with Shanghai-based SAIC Motor Corp to build a factory in the western Chinese city of Urumqi. The plant will be designed to build as many as 50,000 vehicles per year from 2015.
VW, the first overseas car maker to enter China three decades ago, said last year it planned to spend 14 billion euros on new plants and products in China through its joint ventures. VW appointed executive board member Jochem Heizmann in June to take charge of a special portfolio to oversee future expansion in China.
Chinese sales of VW group brands including the Audi luxury division and Czech car maker Skoda rose 17.5 percent in the first five months to 1.08 million vehicles.
VW extended its 1991 joint venture with FAW by another 25 years in April. The partners operate factories in the eastern cities of Changchun, Chengdu and Dalian.
