Volkswagen plan factory in Changsha

Volkswagen plan factory in Changsha

Volkswagen AG exclaimed today that the company plan to build a new plant in China’s Hunan Province, in Changsha. This is part of the company plans to expand it’s factory capacity in China, to 4 Million per year.

The new Volkswagen factory will have a yearly capacity of around 300,000 vehicles

A spokesman for the company said the factory will have a yearly capacity of around 300,000 vehicles and production will start in 2016. China is Volkswagen’s largest market, with around one in five vehicles that are sold in the country, belonging to them. The company have plans to increase the capacity in China to 4 Million, from the current 2.6 Million, by the year 2018.

Volkswagen’s sales in China for the first quarter of this year, reached 768,565 card, which was up by 21.3% from the same time the previous year. This year, the company are expected to sell around 3 Million cars in China.

Head of the company in China, Jochem Heizmann, who is also a member of China’s global management board, last month explained to reporters that Volkswagen were currently in talks with Changsha authorities, due to the company planning on building seven new plants in China. Volkswagen have 12 vehicle production and component sites throughout the country, according to a Volkswagen annual report last year.

A company spokesman said that the new production facility would be being built along with SAIC Motor corporation, as part of a joint venture, though details were not given on what models would be manufactured at the plant.

The German automaker were criticised in March by the state run, China Central Television, it was said that the company failed to address properly, concerns expressed by consumers about direct shift transmissions in Volkswagen brand cars, that were said to be faulty. Not long after, the company announced a recall of over 380,000 vehicles.

Volkswagen are expected to be investing £12 Billion within the next two years

Volkswagen, in the course of expanding production capacities at two of it’s joint ventures in China, are expected to invest around £12 Billion, within the next two years. The company also plan to increase the number of employees in China to 100,000 by 2018, which is up from the current 75,000, the company announced in April of this year. Volkswagen currently employs around 552,500 Worldwide.