FAW-Volkswagen Foshan will increase production capacity by 300,000

China First Automobile Co., Ltd. and German Volkswagen AG have recently signed a joint statement on the construction of FAW-VW Foshan Phase II project in Berlin. The two sides will expand investment in the first phase of the FAW-Volkswagen Foshan project and build the second phase of the Foshan project. The total investment of the project is about RMB 15.3 billion and the construction period is 36 months. After the project is completed, it will have the capacity to produce 300,000 vehicles per year. By then, the entire Foshan base will have 600,000 capacity.

Since February 28th, 2011, the FAW-Volkswagen Foshan plant broke ground. The two sides invested 500 million euros, and the production capacity has increased from 150,000 in the initial period to 300,000. With the strong support of the state, local governments, and shareholders, the first phase of the Foshan plant is progressing smoothly and is expected to be completed in August 2013. The FAW-Volkswagen Foshan plant has already put into production the products of the Volkswagen and Audi brands. A total of four models will be put into operation. The first products of the two brands that went offline at the Foshan factory have been identified as Golf 7 and Audi A3 models. The first model, the F11, will go offline in August 2013 and become the first Volkswagen to be produced in the Foshan base. By December of that year, Audi's first model A3, which was commissioned in Foshan, is expected to go offline. The Foshan plant uses the Volkswagen MQB platform, which is an engine platform with a horizontal layout of the engine. This means that Audi A1 and TT will all be expected to produce in Foshan.

According to the positioning of FAW-Volkswagen's three major bases, its Changchun plant mainly produces Audi's B-Class and C-Class vehicles and Volkswagen brand B-Class vehicles. The Chengdu base mainly produces Volkswagen brand A-Class vehicles, while the Foshan base focuses on the production of Volkswagen brand A-Class in the future. Car and Audi products. According to the plan, with the total release of the 300,000 capacity of Phase One of the FAW-Volkswagen Foshan plant in 2014, together with 900,000 units of the Changchun base and 540,000 capacity of the Chengdu base, FAW-Volkswagen will have a production capacity of more than 1.7 million units. The scale, to be completed in the second phase of the Foshan factory, in 2015 the production and sales scale of FAW-Volkswagen is expected to reach 2 million.

FAW and Volkswagen expressed that they will also respond positively to China's development strategy, invest in and build new bases at suitable time and place, and further expand production capacity to drive local economic development.