Volkswagen recently announced that it will be putting in additional investments of around $2 billion in China so they can construct two new factories and meet the growing demand of the market through new models that will be introduced.
The latest spending of the German car manufacturer is on top of their $5.8 billion expenditures through 2012 as disclosed back in 2009. This move brings the investment of VW in China to more than $8 billion.
The injection of additional funds will help the brand push for better technologies and keep its leadership in the Chinese market, considered to be the hungriest automotive market today.
According to the VW Group top exec in China, the company is determined of reaching their goal of selling 2 million cars.
Experts say that China is a very critical and important market for most automakers especially with the number of sales in the west experiencing a slump. Volkswagen is next to General Motors as the biggest car manufacturer in China. The sales figures of the VW went up by as much as 61% or about 457,259 units in mainland China and in Hong Kong.
The decision makers at VW have approved the investment and it will basically come from the FAW Group and SAIC Motor ventures of VW in China.
Volkswagen intends to build two plants in the southern portion of China with each having a production capacity of 200,000 units. The brand wants to up their sales from 150,000 vehicles to 500,000 between 2013 through 2015 and to improve their market share to 19% from 12% back in 2008.
VW declined to disclose the possible sites in China.