FAW-VW Going South Together Hand in Hand

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First Automobile Work
FAW-VW are planning to invest 8 billion RMB into the venture, which will be online by 2013 and be able to produce 300,000 cars per year, some of which will be exported to South Asian countries, making the VW the third company behind Honda and BMW to export Chinese made cars to other markets. The factory itself will be based in Foshan, Guangdong, and will be able to produce 300,000 cars per year when it is fully online in 2013.

VW is aiming to boost its Southern Chinese sales from around 150,000 units per year to 500,000 units per year within the next three to five years, and also aims to lift market share from 12% to 19% of the Southern market this year.

VW also has a JV with Shanghai Auto (SAIC), and ultimately aims to to double its production capacity to 3 million units per year by 2013, according to VW CEO Martin Winterkorn. In the first 5 months of 2010, VW sold 778,000 vehicles in China, which is an increase of 48% over the same period in 2009.