Auto giant Volkswagen has announced that it will build a second world class assembly plant in Eastern China.
This news follows Volkswagen’s announcement last month that it would build its first Assembly plant in the South of China. Nonetheless these latest plans give a good indication of the growth that Volkswagen is expecting in the coming years.
Set to be operational by 2013 the Eastern China plant will have a capacity to produce some 300,000 Volkswagen cars each year.
China is currently one of the largest importers of Volkswagen vehicles, with sales reaching 1.4 million in 2009. 2010 has only meant more success for the German brand with sales in the first half of this year up 46 percent, reaching over 950,000 vehicles.
It is this growth that has prompted the auto giant to invest USD $7.7 billion ($8.74 billion) in building two new assembly plants in the country in an effort to keep up with demand. The company is expecting sales to reach 3 million vehicles by 2013.
Volkswagen appears to be following a trend in the auto industry by opting to assemble vehicles in China. Other Auto brands including Daimler AG, Nissan, Honda and Toyota are all expected build new assembly plants in China.
It is well known that Volkswagen CEO Martin Winterkorn plans to overtake Toyota by 2018 to become the world’s largest Automaker (Hyundai may have something to say about this) and the latest move suggests his plans appear to be well on track.