The Volkswagen Group is set to continue its growth in China over the next few years. Between 2009 and 2011, the Group is to invest a total of €4 billion (US$5.8 billion) in new products and the expansion of production capacities in China.
The investments are to be financed from the cash flow of the Chinese joint venture companies. At the Nanjing and Chengdu plants, production is to be boosted to between 300,000 and 350,000 units in each case by 2012. These investment plans were approved on Friday by the Supervisory Board of Volkswagen Aktiengesellschaft.
For the Volkswagen Group, China is one of the most important markets in the world. We are already well-positioned there with a broad product portfolio. Demand for our models is growing so dramatically that our capacities in China are no longer sufficient.—Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG
The planned investment of a total of €1.3 billion (US$1.9 billion) in new products and capacity expansion at Nanjing and Chengdu will include additional production facilities with body, paint and assembly shops. From 2012, three new models are set to leave the production lines at Nanjing and two at Chengdu.
"In China, we will see clear double-digit growth in 2009 and expect to remain the market leader in the future. Volkswagen Group China is well on the way to reaching the target of doubling sales to two million vehicles laid down in our Strategy 2018 earlier than planned.—Dr. Winfried Vahland, President and CEO of Volkswagen Group China
The Volkswagen Group has long been the market leader in China. This year, Volkswagen has already launched three new models on the Chinese market: the Volkswagen Golf, the Volkswagen Passat New Lingyu and the Škoda Superb. The product offensive is to receive a further boost from the introduction of advanced Group technologies such as the 7-speed DSG or economical TSI engines.
Currently, models manufactured by the Volkswagen Group in China include the Volkswagen Polo, Lavida, Santana, Santana Vista, Passat New Lingyu, Touran, Golf, New Bora, Jetta, Sagitar and Magotan, as well as the Škoda Fabia, Octavia and Superb and the Audi A4L and A6L.
The monetary and fiscal measures taken by the government have provided positive impetus for the Chinese automobile industry. In China, deliveries by the Group rose to 652,222 units (2008: 531,612 units; +22.7 percent) in the first half of 2009.