Shanghai VW to build new factory in Changsha, Hunan

Gasgoo.com (Shanghai May 16) - Shanghai Volkswagen is preparing to build a new automobile factory in Hunan's provincial capital of Changsha, the Beijing Times reported today. The signing ceremony and foundation laying for the factory have already taken place.

According to sources close to the issue, Changsha was selected because of its industry and logistical advantages. The new site will be located in Shanzhen country in the Changsha National Economic and Technical Development Zone. The 12.08 billion yuan ($1.94b) site will boast an annual production capacity of 300,000 vehicles, with its focus being in compacts, subcompacts and midsizes. The Skoda Octavia is hinted to be one of the models to me made at the site.

At the moment, Shanghai VW possesses seven large-scale automobile production sites in Shanghai, Nanjing, Zhejiang's Ningbo, Jiangsu's Yizheng and Xinjiang. The Changsha factory will be its eight major automobile production site, and its twelfth Chinese factory overall.