VW says to invest 1.6 billion euros more in China by 2012
Europe's biggest automaker, Volkswagen, said Monday it would increase its investment in China by 1.6 billion euros (2.1 billion dollars) over the next two years, building two new production sites.
"Due to the dynamic development of the Chinese car market, Volkswagen is raising its current investment programme in China by an additional 1.6 billion euros" through to 2012, the German firm said in a statement.
This brings its total planned investment there for the period to six billion euros.
Last year, VW earmarked some 4.4 billion euros in investment for China by the end of 2012, a market enjoying growth that has "exceeded all expectations," according to Martin Winterkorn, Volkswagen's chief executive.
In the first three months of 2010, VW delivered 457,259 vehicles to clients in China and Hong Kong, a gain of 61 percent on the same period last year.
"We will achieve on time our long-term aim of doubling our sales in China to two million units," said VW's head of Chinese operations, Winfried Vahland.
In 2009, VW sold 1.4 million vehicles in China, which has become an even bigger market for the automaker than its home base of Germany. Globally, VW sold six million cars last year.
© 2010 AFP