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It’s quite impressive when you think about it; VW’s China operations have grown to such an extent (sales of some 1.9 million cars annually) that the company now needs to add a 10th manufacturing facility in the country to keep up with demand.
Little is known about the new assembly facility at this time, only that it will be built in or close to Urumqi, the capital city of Xingjiang province (the largest metropolis in Western China) and will be tasked with assembling two mid-size sedan models for Chinese consumption.
VW currently has two joint venture partners in China, First Automobile Works (FAW) with which it’s had a deal for more than two decades and Shanghai Automotive Industry Corporation (SAIC, shown above). Volkswagen didn’t make clear which partner would be involved with this venture.
Nonetheless, once the new factory is up and running, it should enable Volkswagen to boost vehicle sales to over 2 million cars annually in China.
Volkswagen will partner with Chinese automaker FAW to launch a new brand, which will build and sell electric cars for Chinese consumers.
Plans were submitted to the Chinese government, although details of the vehicle weren’t publicly disclosed. Honda, Nissan and General Motors have recently expanded into creating their own Chinese market brands in partnership with other Chinese automakers. China’s government is encouraging these partnerships in order to allow their own domestic automakers to gain experience in developing new cars.
[Source: Automotive News]