Volkswagen opens two new plants

German auto manufacturer Volkswagen and Chinese state-owned automotive manufacturing firm FAW have agreed to build two new vehicle plants in China.
Mon, 7 Jul 2014German auto manufacturer Volkswagen and Chinese state-owned automotive manufacturing firm FAW have agreed to build two new vehicle plants in China.

The announcement follows a three-day visit to China by Germany’s chancellor Angela Merkel.

The two plants will be built at the same time on China’s East coast in the cities of Qingdao and Tianjin. The sites were chosen due to the ‘high-qualification levels [of the available workforce] and the infrastructure’, according to a statement by Volkswagen. No staffing figures were available.

Furthermore, Tianjin will be the new production plant for dual-clutch gearboxes (DSG) for Volkswagen in China that is due to be inaugurated at the end of the year. Together, the two partners are to invest about €2bn (£1.58bn) in the expansion of production capacities.

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