The FINANCIAL — In view of the dynamic development of the Chinese automobile market, Volkswagen has added 1.6 billion euros to its current investment program for China.
"Among other things, the additional funds are to be used for facilities at two new locations. Last year, Volkswagen already decided to invest 4.4 billion euros in the Group's activities in China. With the new total of 6 billion euros, the Group intends to maintain and reinforce its leading position on one of the key sales markets of the automobile industry," Volkswagen informs.
"Growth in the Chinese automobile market has exceeded everyone's expectations", said Prof. Dr. Martin Winterkorn, Chairman of the Management Board of Volkswagen Aktiengesellschaft. "The Volkswagen Group is already extremely well-positioned on this market of the future with an attractive product range. These additional investments will lay the foundations for a successful future for the Volkswagen Group in China", Winterkorn added.
The comprehensive investments in new models and additional capacities in China are to be financed from the cash flow of the Shanghai Volkswagen and FAW-Volkswagen joint ventures and have been confirmed by the Supervisory Board of Volkswagen Aktiengesellschaft.
"With these investments, we intend to boost the introduction of new models and advanced technologies on the Chinese market. The Volkswagen Group is convinced that these investments will maintain our market leadership in China and also allow us to take a leading position in the field of alternative propulsion technologies. We will reach our long term target of doubling our sales to two million vehicles according to plan", said Dr. Winfried Vahland, President and CEO of Volkswagen Group China.
In 2010, the Volkswagen Group will be launching a total of seven new or updated models produced locally on the Chinese market. Of these, the new Volkswagen models Golf GTI and Tiguan LWB (long wheelbase) as well as the updated versions of the Jetta A2 and the Škoda Octavia were already positioned successfully on the market in the first quarter. The Volkswagen CC is making its debut at this year's Auto China motor show in Beijing.
The Volkswagen Group currently produces the following models in China: Volkswagen Polo (notchback and hatchback), Cross Polo, Lavida, Santana, Santana Vista, Passat New Lingyu, Touran, Tiguan LWB (long wheelbase), Golf, Golf GTI, New Bora, Jetta, Sagitar and Magotan as well as the Škoda Fabia, Octavia und Superb and the Audi A4 L (long wheelbase), Audi A6 L (long wheelbase) and Audi Q5.
In the first quarter of 2010, the Volkswagen Group delivered a total of 457,259 vehicles (2009: 284,146 vehicles, +60.9 percent) to customers in China and Hong Kong.
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