Volkswagen To Build Tiny Factory In China’s Middle Of Nowhere

When Chinese Premier Wen Jiabao will come to Germany on April 23, he will open the Hannover Fair and will visit old friends at nearby Volkswagen. Volkswagen will have a present for China's outgoing leader: Volkswagen will build another factory in China. What is strange are the factory's size and location. The factory will be located in China's proverbial middle of nowhere, in Urumqui near the western border to Kazakhstan. Urumqui is more known for ethnic clashes in the restive  Xinjiang province than for its auto industry. What is also odd is the size of the VW plant. The present is the proverbial small present. The plant will be built for 20,000 to 50,.000 units per year, says Automobilwoche [sub]. "Other VW factories in China produce more than 300,000 units per year," says the magazine. The small factory also will come relatively cheap. Xinjiang media talks about 2 billion yuan, or $317 million. Volkswagen will hardly notice that investment. The company said last year it plans to spend 14 billion euros ($18 billion) on new plants and products in China through its joint ventures. The joint venture involved with this factory is SAIC, says Automobilwoche. from The Truth About Cars http://www.thetruthaboutcars.com

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