Manufacturing News

VW to double production capacity of its South China plant

While its first plant in south China is still under construction in the city of Foshan, Volkswagen Group already has decided to expand the plant it jointly owns with China FAW Group Corp.

On Sunday, VW China chief Jochem Heizmann and FAW Group Chairman Xu Jianyi met in Germany and signed an agreement to expand capacity, said FAW.

The plant, which is due to start production in August, initially will produce up to 300,000 vehicles a year.

Construction of the plant's second phase will start later this year. This phase will add an additional 300,000 units of production in 2015.

VW has said that the Foshan plant will build the Volkswagen Golf and the Audi A3.

As part of its plan to become the world's largest automaker, Volkswagen has pursued aggressive expansion in China. Earlier this month, its joint venture with SAIC Motor Corp. started construction of a plant in the central China city of Changsha.

Last year, VW Group sold 2.8 million vehicles in China, its largest global market. It aims to increase its annual production capacity in China to 4 million units by 2018, up from now 2.6 million units now.

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