FAW-VW starts producing new Jetta in Changchun

Shanghai, March 4 (Gasgoo.com) FAW-Volkswagen, a Chinese venture of Volkswagen AG, started production of the new VW Jetta cars on March 2 at its Changchun plant in northeast China, media reported.

Production of the new Jetta marks VW's progress in upgrading its hot-selling Jetta products by improving the components, safety, and quality. Jetta was well received in medium- and small-size cities, with sales in 2008 hitting 200,000 units, or 40% of FAW-VW's total sales of the year. The new Jetta will come to the market soon.

FAW-VW is aiming for its annual output and sales goals of 1 million vehicles, a burden to its current marketing channels, said SinoCast. From 2006 to 2009, the JV's total sales volume of the Volkswagen-branded vehicles surged nearly 100%. Last year, the company aggregately sold more than 680,000 vehicles, up 32%.

In May 2009, Volkswagen and its Chinese partner FAW Group began construction of a plant in Chengdu, southwest China. The first phase of the project, with 5 billion yuan ($732 mln) invested, will have an annual output of 150,000 cars.  The new Jetta will likley be the first model to roll off the production line at the new facility.

FAW-VW started producing Jetta cars in July 2007 at FAW's Chengdu factory, which was bought by the joint venture last year. The new Chengdu plant may also make the next-generation Sagitar and will have its production capacity more than double to 350,000 vehicles at last.

The joint venture will also build a new factory in Guangzhou, south China for producing Seat and other models. The Guangzhou facility will be Volkswagen's fifth China plant after Shanghai, Changchun, Nanjing and Chengdu factories.