FAW-VW Chengdu plant to become operational in 2011

Shanghai January 7 (Gasgoo.com) FAW-Volkswagen, a joint venture between China FAW Group Corporation and Volkswagen AG, will put into operation its new plant in Chengdu, capital of Sichuan province, in 2011, Chongqing Times reported Friday, citing an insider.

The Chengdu plant will have an initial capacity of 350,000 vehicles per year. Following the production of the Volkswagen Sagitar and Jetta there, the total capacity of the Volkswagen Golf will be increased by 50% this year, the insider said.

FAW-VW has started in 2009 to optimize and upgrade Chengdu plant's product structure, production capacity and sourcing conditions. Upon completion of the project, its Chengdu production base will have a total capacity of 600,000 vehicles, Jiang Yanchun, Secretary Party Committee of FAW-VW, revealed.

FAW-VW sales jumped 30% from a year earlier to approximately 880,000 vehicles in 2010, a remarkable performance given its limited capacity of 660,000 vehicles.