Volkswagen aims to cut engine emissions in China

FRANKFURT (Reuters) -- Volkswagen opened its new engine plant in Dalian with the pledge to cut fuel consumption and emissions by over 20 percent by 2010 for its models built in China.

"Volkswagen intends to become the most environmentally friendly automaker in China with the help of modern TFSI engines, innovative automatic gearboxes, lightweight design and further initiatives," the carmaker said in a statement today.

Roughly $106.5 million (80 million euros) were invested in the new engine plant, and total investment until 2011 amounts to roughly $193.0 million (145 million euros). The plant is designed for an annual production capacity of 300,000 engines.

Volkswagen builds cars in China at its two local joint ventures, Shanghai Volkswagen and FAW-Volkswagen.