Volkswagen to open 3 new factories in China
Tuesday, 29 May 2018, 16:55 IST
Carmaker Volkswagen Group China announced that it would open three new factories to produce electric vehicles and SUVs in the Chinese cities of Qingdao, Tianjin, and Foshan.
The new plants by the joint venture between the German company and Chinese firm First Automobile Works hope to boost SUV production to meet a growing demand in the Chinese market, Efe news reported.
"The launch of these new passenger car production facilities will help us meet strong demand for new vehicles in the near-term and pave the way for the future of mobility in China", said Jochem Heizmann, President, and CEO of Volkswagen China, in a statement.
"This year, after record first-quarter sales results, the company expects further growth in the total passenger car market of 4 to 5 percent," Heizmann added.
According to the statement, Volkswagen and its partners are set to invest 15 billion euros (around $17.5 billion) by 2022 in e-mobility, autonomous driving, digitalization and new mobility services.
"Chinese consumers today are demonstrating strong demand for smart, sustainable electric vehicles as well as fun-to-drive, spacious SUVs," said Herbert Diess, the global president of the group, adding that Volkswagen was committed to China, its biggest market in the world.
In April, Volkswagen launched SOL, its new electric car brand for the Chinese market, which is a joint venture with local brand JAC.
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