FAW VW signs $571 mln auto parts contracts for Chengdu plant

Shanghai, July 28 (Gasgoo.com) FAW-Volkswagen, the joint venture between China's second largest auto maker FAW Group and German's Volkswagen AG, has signed 3.9 billion yuan ($571 million)worth of contracts with 22 auto parts manufacturers to supply parts for its vehicle manufacturing project in Chengdu, reports Sinocast Daily Business Beat Tuesday.

The auto parts manufacturers involve renowned parts groups such as Faway-Johnson Controls, Magna Donnelly Corp, and Henkel Automotive Group.

The contracts will involve the production of chassis, car bodies, bumpers, seats, instrumental panels as well other auto parts, according to the report.

In May 2009, FAW-Volkswagen launched the construction of its $735.3 million car manufacturing plant in Chengdu Economic and Technological Development Zone. The plant is expected to have an annual auto output of 150,000 vehicles in the initial phase of this project, with the potential to be boosted to 350,000 units in future.