Shanghai, May 12 (Gasgoo.com) Yesterday, the First Financial Daily learned from Volkswagen AG and its Chinese venture FAW-Volkswagen that there is the latest development with the issue of Volkswagen building two new factories in China. FAW-VW's new plant location has been identified as Shishan town in Nanhai district in Foshan city, Guangdong province, while the new plant location of Shanghai Volkswagen hasn't been announced yet.
The original plan of Volkswagen is to build two factories in Guangdong at the same time. Yesterday, however, Winfried Vahland, CEO of Volkswagen Group China, said there is little possibility that FAW-VW and Shanghai VW's production base will be in the same place for they both need to expand their production capacity.
The Nanhai district in Foshan city has access to excellent auto production resources: BeiQi Foton Motor Co, Ltd, and Foday Motor Company. The Shishan town in Nanhai has parts suppliers of Honda, Toyota and Nissan car manufacturers.
As for Shanghai VW, it is going to focus its expansion based on the acquisition of the original Fiat factory in Nanjing.
Late last year, Volkswagen and its two Chinese ventures jointly issued the “Southern Strategy”designed to improve Volkswagen's market share in South China market. They planed to increase the annual sales of Volkswagen, Audi and Skoda from 150,000 units to more than 500,000 in South China market and to increase this region's market share from 12% in 2008 to Volkswagen's national average level.
In order to increase sales, Volkswagen is committed to introducing 20 new models in three years and furthering its investment in China to 1.6 billion euros, 60% of which will be used for new plant construction.
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