Volkswagen earmarks another 1.6 bln euros for investment in China

• Source: Xinhua
• [08:51 April 27 2010]
• Comments

Volkswagen AG said Monday it will increase its investment in China by 1.6 billion euros with two new plants and other projects, as the company expands its business in the world's largest auto market.

"Growth in China has exceeded all expectations," Volkswagen Chief Executive Martin Winterkorn said.

The investment is in addition to the 4.4 billion euros the German automaker committed in 2009 to expand capacity and develop new products in China by 2012.

Winfried Vahland, head of Volkswagen's Chinese operations, said the company will introduce new models and the latest technologies to China.

"We will achieve the long-term aim of annual sales of 2 million units in China," Winfried Vahland said.

In the first quarter of 2010, Volkswagen delivered 457,259 vehicles to the Chinese mainland and Hong Kong, up 60.9 percent year on year and accounting for 26 percent of the company's global sales of 1.73 million units.

Volkswagen sales in China climbed 36.7 percent in 2009 to 1.4 million units.