Volkswagen to build two Chinese manufacturing facilities

|About: Volkswagen AG ADR (VLKAY)|By:, SA News Editor

Volkswagen (VLKAY) has announced its plan to build two new manufacturing facilities in China. VW will partner with the state-run FAW Group to spend a combined $2.7B on constructing the plants.

"With these investments, Volkswagen is clearly expressing its commitment to the Chinese market," says VW President Jochem Heizmann.

The company reported an 18% increase in Chinese car sales between January and May, totaling 1.5M vehicle sales. With an additional €18.2B investment, VW intends to increase its annual production capacity in China to more than 4M cars by 2018.