Germany's Volkswagen AG has not announced which models to be produced in south China yet, and its president stressed that these to-be-produced models would be the best.
Dr. Winfried Vahland, the former president of Volkswagen Group China, once disclosed that in 2009 and 2010, Volkswagen would release ten products, including the Golf GTI and the VW CC. He added that these products would bring about more energy and enthusiasm, and in particular, they would be more attractive to customers in south China.
At the words, industry analysts guessed that some high-end models, such as the Golf GTI and the VW CC, would possibly be manufactured in south China.
It will be no surprise if Volkswagen decides to make high-end products in south China, which has dominated by Japanese trademarks, analysts added. In Guangzhou, one of the most important markets in south China, models with Japanese heritage took the first six positions on the model list that obtained licenses in 2009. The No. 1 was the Camry, which has been produced in China by GAC Toyota Motor Co., Ltd. (GTMC) under the aegis of the Japanese auto giant Toyota Motor Corp.
In addition, among the Top Six were also the Teana made by by Dongfeng Nissan Passenger Vehicle Company under the wing of another Japanese titan Nissan Motor Co. and Accord manufactured by Guangqi Honda Automobile Co., Ltd., a 50-50 joint venture between China's Guangzhou Automobile Group and Japan's Honda Motor Co.
Volkswagen plans to raise the annual sales volume of the VW, Audi, and Skoda brands from 150,000 to more than 500,000 in the southern market, and enlarge its share in the market from 12 percent in 2008 to the average share across China, according to its previous strategy.
The Germany-based global auto heavyweight had intended to inject EUR 1.6 billion into the construction of two new factories in southern Chinese areas as well as some projects. Its two ventures in China, Shanghai Volkswagen Automotive Co., Ltd. (SVW) and FAW-Volkswagen Automobile Co. Ltd. (FAW VW), were expected to be the main investors.
Later, rampant rumors were heard that SVW's southern factory project was stranded and the venture would continue the capacity expansion in its works in Nanjing, east China.
A person in the knowledge, however, denied the rumors, stressing that the venture was still going through procedures for the final approval and would soon launch the project.
On June 11, 2010, FAW-VW holds a ceremony for signing its project with a total investment of EUR 500 million in Foshan, Guangdong Province, south China. Its new factory is scheduled to start operation in 2013 in Nanhai District, Foshan, and its initial production capacity is designed to stand at 300,000 vehicles.
