Volkswagen to Increase Production in China by 60%
Mar 14th 2013 6:40AM
Volkswagen is already at the top of the auto sales food chain in China, tied most months with General Motors Co. (NYSE: GM). But despite a flattening in growth in Chinese car sales, as well as a threat the government will curtail car use because of inflation, Volkswagen says it will increase production in the People's Republic. Volkswagen must also think its can increase or at least hold its market share as competition from other multinational manufacturers and local companies rises.
According to Bloomberg:
Volkswagen AG (VOW), Europe's largest automaker, plans to increase production 60 percent by 2018 in China, where the German company's earnings last year surged by almost half.
A new plant in China approved by the supervisory board will build as many as 300,000 vehicles yearly and will start operating in early 2016, Chief Executive Officer Martin Winterkorn said today. Capacity in China will rise to 4 million vehicles a year by 2018 from about 2.5 million currently.
Filed under: 24/7 Wall St. Wire, Autos, China Tagged: GM