Volkswagen to build new factory in China April 23, 2012 - 17:12 AMT PanARMENIAN.Net - Automaker Volkswagen AG signed an agreement to build a new factory in China's far west during a visit to its headquarters on Monday, April 23 by Chinese Premier Wen Jiabao, AP reported. Volkswagen said the agreement with China's SAIC Motor Corp. foresees total investment of about €170 million ($224 million). It said the plant in Urumqi, the capital of the Xinjiang region, will produce up to 50,000 vehicles a year starting in 2015. The German company said it also plans to help other auto industry suppliers settle nearby and will set up a training center. "Going forward, we expect strong growth in China's rural regions," Volkswagen Group China CEO Karl-Thomas Neumann said. "The west of the country plays a special role in this context." Volkswagen said it also signed a memorandum of understanding with its other Chinese joint-venture partner, China First Automobile Group, to extend their cooperation by 25 years. Their FAW-Volkswagen joint venture was set up in 1991 and now has vehicle and component plants in Changchun, Chengdu and Dalian. Volkswagen overtook Toyota last year to become the world's second-biggest automaker by deliveries behind General Motors Corp., selling nearly 8.3 million vehicles. China is the biggest market by sales for the Volkswagen Group, whose other brands include Audi, Bentley and Skoda. It sold 2.26 million vehicles there last year; in the first quarter of 2012, it sold more than 633,000, a year-on-year increase of 15.6 percent. Wen visited Volkswagen's Wolfsburg headquarters with German Chancellor Angela Merkel. Earlier Monday, they toured a trade fair in nearby Hannover together.   Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads.   Partner news |  Latest news Mirzoyan says meeting with Bayramov was “constructive”  At the moment, Ararat Mirzoyan said, there is no basis for additional comments.OSCE vows support for Armenia “in all three directions of security” Achieving stable peace between Armenia and Azerbaijan remains a priority of the OSCE, said Ian Borg.151 detained as civil disobedience campaigns continue in Yerevan Citizens have been blocking streets in the Armenian capital, demanding Nikol Pashinyan’s resignation.France welcomes Armenia-Azerbaijan meeting in Almaty France has welcomed the new round of negotiations between the foreign ministers of Armenia and Azerbaijan. |
