Wednesday, 27 July 2011

VW group China plans to go West after progress in Southern China

Karl-Thomas Neumann, president and CEO of Volkswagen Group China, recently announced his first strategic plan for Chinese market since he took the position, i.e. Go West strategy.
Volkswagen Group China has made progress in the southern Chinese market. Its market shares in southern China increased 1.3% from a year earlier in the first five months of this year. By this May, its market shares in southern China had reached 15.5%. The rapid growth could be attributed to the company’s Go South strategy.

As the latest moves of the company’s Go West strategy, FAW-Volkswagen’s Chengdu production base will start production this September. Recently, FAW-Volkswagen’s Chengdu EA211 engine plant Phase I and the Chengdu auto plant Phase III started construction. The investment in the two projects surpasses 10 billion yuan. The two projects will complete construction in March 2013. By then, the newly-added auto capacity will be 450,000 units.
It is also rumored that Shanghai Volkswagen’s No.6 plant will be located at Urumqi, Xinjiang Uygur Autonomous Region. Mr. Neumann did not deny nor confirm the news, and he only said that they are still choosing the possible location.


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