German automaker announces a €14.3 billion/19 billion investment to expand production and sales in China.
Volkswagen is going big in China.
The German automaker will be investing $19 billion (€14.3 billion) in China between 2012 and 2016. That sum is outside the record $86.1 billion (€62.4 billion) VW Group announced back in September it would be investing globally over the next five year to reach its goal of being the world's largest automaker by 2018 and selling 10 million units a year.
The money will go to increasing production capacity in China to 3 million vehicles per year by 2015. The automaker plans to launch 50 new models there by that year. Volkswagen operates in China with partners Shanghai Auto and FAW.
Volkswagen will have a market share of close to 16 percent in China this year with sales for 2011 closing in on 2 million units.
The German automaker expects growth to remain healthy in China for some time.
Says Karl-Thomas Neumann, CEO and president of VW China:
"The steady growth will make 2011 the most successful year for Volkswagen in China. [VW is] very optimistic on car demand in the country in the medium term."