Volkswagen Group China plans to go west after progress in southern China

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Karl-Thomas Neumann, president and CEO of Volkswagen Group China, recently announced his first strategic plan for Chinese market since he took the position, i.e. Go West strategy.

Volkswagen Group China has made progress in the southern Chinese market. Its market shares in southern China increased 1.3% from a year earlier in the first five months of this year. By this May, its market shares in southern China had reached 15.5%. The rapid growth could be attributed to the company’s Go South strategy.

As the latest moves of the company’s Go West strategy, FAW-Volkswagen’s Chengdu production base will start production this September. Recently, FAW-Volkswagen’s Chengdu EA211 engine plant Phase I and the Chengdu auto plant Phase III started construction. The investment in the two projects surpasses 10 billion yuan. The two projects will complete construction in March 2013. By then, the newly-added auto capacity will be 450,000 units.

It is also rumored that Shanghai Volkswagen’s No.6 plant will be located at Urumqi, Xinjiang Uygur Autonomous Region. Mr. Neumann did not deny nor confirm the news, and he only said that they are still choosing the possible location.

About the author  ⁄ SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

4 Comments

  • MannyZ
    July 26, 2011

    VW produces junk cars, and soon the Chinese consumer will be able to see the diferance between Toyota quality and VW non quality. Dream on VW.

  • Sith
    July 27, 2011

    Exactly, i have the same opinion.

    reetings from swiss

  • July 27, 2011

    Chengdu is not exactly a new site for FAW-VW they have been producing cars there for a number of years.

  • Nik
    August 15, 2011

    Toyota make quality cars!! Dream on, you want a decent car that lasts buy German. Toyota are going thru lots or recalls, plus the resale value on a Toyota is terrible, at least a German car retains value better.
    Toyota…. haha.

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