Audi to Build Second Plant in China for A3 Production

The country with the most car brands and factories in the world just agreed to let Audi to open another plant. Audi made the announcement today stating that FAW-VW, the VW Group's current Chinese operation, will set up a new plant in Foshan for the production of the next generation of the A3.

“Our ties with China and our partner FAW date back more than 20 years”, said Audi Chairman Rupert Stadler at the ceremony announcing the new production site. “In order to be able to tackle future challenges together as well, we want to strengthen our presence significantly in China and further strengthen our strategic partnership. The new plant is an important milestone in our long-term growth strategy in China.”
 
The new plant that will include press, body and paint shops as well as a full assembly line, will be built on a site covering 100-hectares and employ around 4,000 people. It will become operational in 2013 and its annual capacity will be between 150,000 to 200,000 units.
VW and its Chinese partner FAW plan to invest a total of three billion euros in the next five years for the expansion of the Audi brand. Apart from the Foshan factory, Audi’s existing plant in Changchun, which has been operating for more than 20 years and currently manufactures long-wheelbase versions of the A4 and A6 saloons along with the Q5 SUV, will see its production volume increased to 500,000 and 550,000 units per year.
It’s clear that Audi, which is already the market leader in the local luxury segment and expects to exceed 300,000 sales in 2011 for the first time ever, plans a rapid and high-volume expansion in China.

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