16 May 2013

Volkswagen builds new plant in Changsha, China

Beijing – 16 May 2013 - Today’s ground-breaking marked the beginning of construction work on the new Volkswagen vehicle plant in Changsha in the province of Hunan, south-central China. The new plant in Changsha is scheduled for completion end of 2015 and will manufacture approx. 300,000 vehicles per year. The factory is being built in cooperation with the Chinese joint venture Shanghai-Volkswagen (SVW). 

We are expanding our capacity in China to four million vehicles per year by 2018 in order to meet demand from our Chinese customers”, Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG with responsibility for “China” and President and CEO of Volkswagen Group China, said at the contract signing ceremony and ground-breaking in Changsha. 

The Changsha plant is part of the €9.8 billion investment program being realized by the two Chinese joint ventures in the period to 2015. The aim of the investment projects financed from the cash flow of the two joint ventures Shanghai-Volkswagen and FAW-Volkswagen is to consolidate the Volkswagen Group’s leading position on the Chinese passenger car market. The investments focus on developing new models and expanding production capacity. The Changsha factory is one of seven new plants to be built in China this year and over the coming years. The plants will also create new skilled jobs.

Shanghai-Volkswagen currently operates vehicle plants in Shanghai and Nanjing as well as Yizheng in the province of Jiangsu. Further factories are being built in Ningbo and in Urumqi under the “Go West” strategy.

FAW-Volkswagen operates vehicle plants in Changchun and Chengdu. The factory in Foshan which is currently under construction will be FAW-Volkswagen’s first plant in Southern China.

Together with its partners FAW-Volkswagen and Shanghai-Volkswagen, the Volkswagen Group currently builds 20 models of the Volkswagen, Å KODA and Audi brands in China. 

Source: Volkswagen