FAW-VW Chengdu plant to make 150,000 cars annually

Shanghai, November 3 (Gasgoo.com) On October 30, the signing ceremony of FAW-VW Chengdu project was held in Chengdu, which maps out FAW’s strategy of expanding its market to western areas with Chengdu as the center, West China City Daily said today.

Industry analysts said the Chengdu plant by FAW-VW will not only help sharpen the joint-venture’s competitiveness but also promote the auto industry of Sichuan province. The latest data show that Jetta produced in Chengdu is close to 13,000 units, with sales totaling 1billion yuan by the end of September.

The Chengdu plant is schedule to have an annual capacity of 150,000 units initially, rising to 350,000 at last. The project may generate sales revenue of up to 40 billion yuan annually when it is finished. A line of suppliers will also be likely located in Sichuan thanks to the project.

The FAW-VW Chengdu plant has produced about 13,000 units of Jetta through this September since its production started in July 2007, and their sales totaled 1billion yuan. The project not only increases FAW-VW’s competitiveness but also stimulates the local economy in Chengdu looking from the local tax increase.

Amid the current economic turmoil and declining auto industry, FAW-VW is still seeing a stable growth for Magoton, Sagitar, Bora, Golf and some other models compared to other brands. As the Chengdu plant of FAW-VW is established, local dealers take full advantage of this facility in various aspects.