Manufacturing News

VW begins expanding south China assembly plant

FAW-Volkswagen Automobile Co., VW's joint venture with China FAW Group Corp., last week began constructing the second phase of its assembly plant project in Foshan.

The expansion, which will be completed in three years, will double the plant's annual production capacity to 600,000 units, according to FAW.

The Foshan plant, which is in south China's Guangdong province, produces the Volkswagen Golf and the Audi A3.

The joint venture also operates two plants in the northeast China city of Changchun and one in the southwest China city of Chengdu. The four plants combined now can produce 1.7 million vehicles a year, according to FAW.

Volkswagen also has a joint venture with SAIC Motor Corp. -- a partnership that produces 1.7 million units a year in seven assembly plants. That partnership is building a new plant in the central China city of Changsha that will produce up to 300,000 vehicles a year.

Last year, VW sold nearly 3.3 million vehicles in China, its largest global market. It aims to increase annual production capacity in China to 4 million units by 2018.

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