Source: Shanghai-VW temporarily halts expanding to South China

• Source: Global Times
• [17:30 June 09 2010]
• Comments

Shanghai-VW has temporarily halted its plan to establish new plant in south China, according to China Business News, citing an insider.

The insider said the negotiation has halted and the joint venture between SAIC (Shanghai Automotive Industry Corporation) and Volkswagen will either continue the production capability expansion of its Nanjing plant in Jiangsu Province in Eastern China, or use the Yizheng plant which is fully owned by SAIC.

Volkswagen was reported to plan the construction of two factories and some other projects with an investment of 1.6 billion euros ($1.91 billion) implemented by FAW-VW and Shanghai-VW.

FAW-VW signed deal with the administration of Nanhai division in Foshan, Guangdong Province today with an investment of 8 billion yuan ($1.17 billion) to build a new plant.

Agencies and Shi Jierui contributed to this story