VW invests $224 million in Chinese factory
Plant will produce up to 50,000 vehicles a year.
BERLIN: Automaker Volkswagen is building a new factory in China’s far west that will produce up to 50,000 vehicles a year.
Volkswagen said the agreement signed by chief executive Martin Winterkorn and representatives of China’s SAIC Motor Corp. will carry a price tag of about $224 million.
The plant, in Urumqi, the capital of the Xinjiang region, should start production by 2015. The German automaker says it also signed an agreement with its other Chinese joint-venture partner, China First Automobile Group, to extend their co-operation by 25 years.