China has remained the head of all automotive controversies, as all the leading automakers wants to have a big pie of share from that country. It is undoubted that China is the most populated country in the world, which means number of buyers available, and is also having a good reach in the boost of world economy, so a wide array of buying segment can be targeted to.
However, one more German felt to prey it, and the Volkswagen announced to come up with two new vehicle plants in that country.
The announcement came in the presence of German Chancellor Angela Merkel and Chinese Premier Li Keqiang. Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft and President and CEO of Volkswagen Group China, signed a joint declaration for two new vehicle plants in China together with Xu Jianyi, Chairman of FAW.
“China has become our largest and most important market. To satisfy the demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, who witnessed the signing of the declaration.
“With these investments, Volkswagen is clearly expressing its commitment to the Chinese market. Following two decades of successful cooperation, Volkswagen will further intensify its strategic partnership with FAW with a view to bringing innovative, sustainable mobility solutions onto the Chinese market,” said Heizmann.
The two new vehicle plants would raise their heads up step-by-step format on the East coast of China in the cities of Qingdao in Shandong Province and Tianjin. If spoken specifically, the Tianjin will be the house of production for dual-clutch gearboxes (DSG) for Volkswagen in China which will be inaugurated at the end of 2014.
In total, investment of approximately two billion euros will be pumped to realize these new facilities in actual.
Just to brief about the VW in China, the automaker had commenced its sales there since past 30 years. Together with its two joint ventures FAW-Volkswagen and Shanghai-Volkswagen, the Group delivered near to 1.51 million vehicles between January and May 2014, representing a rise of 17.7 percent compared with the corresponding period of the previous year.
