Volkswagen Raises Chinese Capacity To 3 Million

Bertel Schmitt
by Bertel Schmitt

Volkswagen is betting big on China. Volkswagen wants to double their production capacity in China to three million vehicles by 2013/14. That is roughly half of their current worldwide production. To do that, Volkswagen will finally build their long rumored, but often denied second new plant in China. A week ago, Volkswagen had announced that they would build a plant with their northern partner FAW in China’s deep south.

Now we hear that Volkswagen will open another plant in Yizheng, Jiangsu province. This factory is being built together with Volkswagen’s Shanghai partner SAIC. Yizheng is not far from Shanghai (so much for the plan to saturate the south with factories) and SAIC won’t allow a factory of their northern arch rival in front of their noses. The new plant has a capacity for 300,000 units a year and will begin production in 2013.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Rada Rada on Jul 18, 2010

    If German-made Passats fall apart after 30K, I'm wondering about the longevity of Chinese-made ones. Yuck.

    • See 1 previous
    • Th009 Th009 on Jul 18, 2010

      Not all, at least. A friend drives a 2000 Passat wagon (with the 1.8T), bought new. He'd like to get a new car but says he can't justify the money when the Passat still works great (and is by now worth almost nothing on resale). I'm pretty sure he has over 30K miles on it ...

  • Blowfish Blowfish on Jul 18, 2010

    10 yrs probably 100,000 miles , and thats kind of conservatively estimated. Some folks can put on 100 miles a day commuting. If u put in 500 a wk, 50 wks plus holiday travel, 25 k a yr is not a lot. 10 yrs that could transform to 250,000 miles. Right now I have 3 merc Turbo D, ranges from 350 km 390 and 500 km. Cars from Middle Kingdom could have good QC too, depends how well were they getting paid, by next yr the wages could have jumped a few folds. as the policy favors striking against foreign ( Lo Oi's ) ownership co. But not nationally owned co.

    • Gimmeamanual Gimmeamanual on Jul 19, 2010

      That's twice you've typed Lo Oi; are you trying to say laowai or gweilo?

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