Loading...
See More

Volkswagen to invest €14bn in China

Nov 23 2012 13:17 Reuters

Related Articles

VW eyes R55 000 budget car

Fraud charges stun former Porsche exec

Export boost for Volkswagen SA

VW sales up, warns on debt crisis

Wedding bells for VW, Porsche

Audi may pay about €860m for Ducati

 
Beijing - Volkswagen AG plans to invest €14bn in China over the next four years, its China chief was quoted by the China Daily newspaper as saying, as it speeds up its expansion in the world's largest autos market.

Volkswagen, which produces cars in China in partnership with SAIC Motor Corp and FAW Group, is building four plants in the country, the newspaper said, citing the German automaker's China chief Jochem Heizmann.

Volkswagen sold 2 million cars in China in January-September, up 18.3% and more than double the overall industry growth.

By 2018, Volkswagen's China annual capacity will reach at least 4 million vehicles, Heizmann told the China Daily, adding the group's workforce, including those at joint ventures, would rise to 85 000 within 3-5 years from 50 000 now. Heizmann was at the Guangzhou autoshow on Thursday.

The German automaker will also build plug-in hybrid cars in China within 2-3 years and make plug-in hybrid powertrains, he added. Encouraged by Beijing's initiative to put 5 million electric and plug-in hybrids on the road by 2020, foreign automakers are gearing up to tap the potential for green cars in China.

General Motors Co, which already sells its plug-in hybrid Chevrolet Volt in China, this week rolled out its first China-developed electric car, the Sail Springo EV. Nissan Motor Co Ltd is also promoting its Leaf electric car with local governments and will expand the effort to include its Venucia e30 China-only electric car - made at its joint venture with Dongfeng Automobile Co Ltd - next year.

Globally, Volkswagen, jostling with Toyota Motor Corp as the world's number-one automaker, is expected to increase spending by 12% to as much as €70bn for its 12 brands over the next five years, compared with €62.4bn for 2012-16 agreed a year ago, analysts have said.

That would be a record, but also represent a slowdown. The €62.4bn target was more than a fifth higher than over the 2011-15 period.
volkswagen  |  china  |  investment
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...