Manufacturing News

VW Group doubles capacity of South China plant

Volkswagen Group completed an expansion at its Foshan assembly plant in south China’s Guangdong province that will double the factory’s annual production capacity to 600,000 vehicles.

The Foshan plant has primarily built the Volkswagen Golf and Audi A3 sedan. With the expansion, Volkswagen is now building the T-Roc crossover at the plant, VW Group said.

This year, the factory will start assembling the elongated Audi Q2 crossover. In 2020, it will begin producing electric vehicles based on VW Group’s MEB platform.

The Foshan plant is run by FAW-VW, VW’s joint venture with China FAW Group Corp.

The German auto giant has been significantly hiking China output.

This year, FAW-VW opened a plant in the northeast China city of Changchun, dedicated to production of the Audi Q5 crossover, as well as a factory for VW brand in the east China city of Qingdao.

The joint venture’s newly built plant in the north China city of Tianjin is expected to start production in the next few weeks.

Last month, JAC VW, VW’s electric vehicle partnership with Jianghuai Automobile Co., started production.

Prior to this year, FAW-VW’s plants in Foshan, Changchun and the southwest China city of Chengdu combined had annual production capacity of 1.6 million vehicles.

In China, VW also has a partnership with SAIC Motor Corp. which can produce more than 2.5 million vehicles a year.

The Foshan plant’s expansion, the three new FAW-VW plants, and JAC VW will increase VW’s annual production capacity in China by 1.35 million to 5.45 million.

For the first five months of this year, VW’s China sales reached 1,686,000, an advance of 12 percent year on year behind demand for Audi and Skoda models.

Last year, the German auto giant delivered 4.18 million vehicles in China, a gain of 5.1 percent.

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