Volkswagen’s new plants in China by 2018


volkswagen-to-build-circuit-supplier-park-in-chattanooga-1692_1Volkswagen is going to enhance its production capacity in China announcing that two new plants will be constructed along the east coast of China within the next three to four years. The automaker announced the plans on 7 July 2014, with the new plants to be constructed in the port cities of Qingdao and Tianjin. Impact of FAW-VW’s new production plants The two new vehicle production plants are being fast-tracked to begin construction so that the start of production at the plants is a couple of years before 2020.

In an email statement sent directly to IHS Automotive, the automaker gave further details of its plans to increase production capacity in its largest global market. “For both plants, we are working closely with our partners to complete necessary procedures and preparations for the start of construction. At present, we are planning a start of production in 2017/18,” the automaker’s spokesperson for China, Larissa Braun, stated in the email.

VW Group will have 12 plants operational in China from 2015 (currently 11 plants are operational):

In China and Hong Kong, the VW Group sold over 3 million units during 2013. The SVW and FAW-VW JVs, together with imported models, saw combined sales of 3.27 million units in 2013, up from 2.81 million sold in 2012. This includes the 214,100 units that were imported into the market, an increase of 13.2% y/y.