Reports throughout the automotive industry suggest that Audi are planning to double their production. This would equate to a tremendous 700,000 cars per year.
FAW and Audi making a huge investment
Volkswagen and FAW, the company’s Chinese partner, are set to invest an incredible $5 billion over five years into Audi. It will be a step taken not only to keep Audi’s leading position in China, but it is a step that will also in directly help Volkswagen’s position to remain the world’s number one car manufacturer.
Rupert Stadler, the Chief Executive of Audi said that the company everything falls into the company’s long term strategy. He stated “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,”
A statement from Audi confirmed the huge investment set to take place. “The FAW-VW joint venture, in which Audi has a stake together with Volkswagen and the Chinese partner FAW, will invest roughly 3 billion euros ($4 billion) in the model range, production and distribution of the Audi brand in China over the next five years,”
Audi are said to employ 4,000 staff in China from 2013 onwards. At present Audi’s plant in Changchun located in the North of the country, produce the popular Audi A4 and the Audi A6. The Audi Q5 is also produced here, with the vehicle expected to be more popular next year. The capacity at the plant is expected to rise to over half a million cars in the following years.
The company’s main plant in Foshan produces around 150,000 to 200,000 vehicles annually at present. This number will increase following Audi’s plans.
The Volkswagen group clearly have high hopes for their Audi division in continuing their major success in China. This may be considered a brave move by some, but Audi have been the leading luxury car manufacturer in the world’s largest market for a number of years.
Some may also raise the question of the major congestion of cars in China. Will the high production figures be feasible in the future?