FAW-VW's Foshan factory to begin full-scale operation in 2013

Gasgoo.com (Shanghai September 6) - FAW Volkswagen has made some outstanding achievements as of late, including reclaiming the monthly sales crown from Shanghai GM. Furthermore, its Magotan midsize has retained the top sales spot for several months now.

In order to keep up with growing demand, VW is working hard to make sure its new Foshan factory (pictured above) is completed on time. In a report appearing on auto.163.com today, FAW-VW Foshan General Manager Chen Dapeng said construction work on the site is proceeding very smoothly, with preliminary models for the main facilities already completed. He added that management staff has already long been in place. Furthermore, auto part suppliers have already begun setting up installations in the vicinity of the new factory, ensuring that automobile production will be able to be done smoothly when the time comes.

Due to increasing demand, FAW-VW has been put under increasing pressure to produce more vehicles. The Foshan site, which is designed to be able to manufacture 300,000 vehicles per quarter, will go a long way in helping the JV relieve that pressure. "Not withstanding any extraordinary events, we will produce our first test vehicle this December," Mr. Chen said, adding that full-scale production at the site is scheduled to begin next August. The seventh-generation Golf (pictured below), as well as sedan and hatchback versions of the Audi A3, will all be built there. Whether or not vehicles from the upcoming Kaili own brand will also be produced in the same site has yet to be confirmed.

The 13.3 billion yuan ($2.09b) Foshan factory is also an important part of VW's strategy to increase its sales in Southern China, a region traditionally dominated by Japanese manufacturers such as Toyota and Honda. In just two years, VW has seen its controlled market share in the region jump from 12 percent to 15.8 percent, proof that its efforts to expand have not gone to waste.