China, apart from being the world’s number one automotive market, is also the largest market for the Volkswagen Group, which sold 2.26 million units last year, and has recorded a 17.1 percent increase in deliveries during the first seven months of 2012.
As a result and despite investigating its local partner FAW for “borrowing” designs and producing parts without a license, the German Group is expanding its presence in the People’s Republic of China by building a new transmission plant.
The plant will be built in Tianjin, one of China’s largest cities located 150 km (93 miles) east of Beijing. It will become operational at the end of 2014, have an annual capacity of 450,000 units and create 1,500 new jobs.
“Our new transmission plant is further confirmation of the inseparable bond between China and Volkswagen. Tianjin will become a cornerstone of our Chinese production network and a driving force for the economy in the entire region”, said Prof. Dr. Jochem Heizmann, who heads VW’s newly-founded "China" operations group, during the founding stone ceremony.
By Andrew Tsaousis
Thanks to Matt J. for the tip!