Manufacturing News

VW plans factory in central China, report says

FAW-VW Automobile Co., Volkswagen's joint venture with China FAW Group Corp., will build an assembly plant in the central China city of Wuhan, according to Chinese media.

Once operational, the plant will build up to 600,000 vehicles a year, reported Xinhua, the official Chinese news agency.

Volkswagen initially will invest 8 billion yuan ($1.3 billion) in the plant.

Its products will likely include FAW-VW's Kaili-brand electric car and a VW-brand SUV, Xinhua reported.

The timeframe for the new plant's construction will be made available after FAW-VW signs an agreement with the Wuhan government, according to the news agency.

The Wuhan plant will become FAW-VW's fifth assembly plant in China. The joint venture operates two plants in the northeast China city of Changchun, one in the southwest China city of Chengdu and one in the south China city of Foshan.

It also will become Volkswagen's 13th joint venture plant in China.

Shanghai Volkswagen Automotive Co., VW's joint venture with SAIC Motor Corp. currently has seven plants in China. It has already started building a new plant in the central China city of Changsha.

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