FAW-VW denies that it will build factories in Wuhan or Inner Mongolia

Gasgoo.com (Shanghai January 7) - FAW Volkswagen has denied stories that it is working with the government to establish a factory in Hubei's provincial capital of Wuhan, auto.163.com reported today. Ever since last July, reports that FAW-VW was in intense negotiations with Zhu Yi, Committee Secretary for Wuhan's Economic and Technological Development Zone, have been circulating across the media.

This is not the first time that there have been reports FAW-VW will establish a new production site in the country. Last October, rumors began appearing across the media that the JV will establish a new site in Inner Mongolia's provincial capital of Hohhot. The municipal government's department in charge of foreign investment reportedly confirmed the news, saying that the signing ceremony for the new site was to be held soon. Interestingly, when reached for comment this month, the office changed its reply to "we don't have the authority for these kinds of projects."

When contacted regarding both of these issues, FAW-VW's representatives offered a quick denial. "I can authoritatively state that both [reports regarding the Wuhan and Hohhot sites] are entirely false," the JV representative said, adding that, "at the present moment, FAW-VW has no plans to construct any new factories, and will not be constructing any in the near future."

First phase construction at FAW-VW's new automobile factory in Foshan, Guangdong was completed this past November. The site currently boasts an annual production output of 360,000 vehicles and will begin full scale operation this year. Further expansion projects are planned for the site. FAW-VW's total annual production capacity is scheduled to total 1.8 million units in 2015.