Bernd Leissner, president of Volkswagen Asia Pacific, declined to comment on the reports. But he did confirm that the automaker is straining to keep up with the China market's rapid growth.
"We are running at almost 100 percent of our capacity and are getting close to zero stock," said Leissner in an interview with Automotive News Europe. "This is putting pressure on our manufacturing system."
But Leissner denied that Volkswagen is close to a decision on a new plant. "We need more capacity in China, no doubt about that. But before building a new plant, you have to fully exploit the possibilities of growth in our existing plants."
If Volkswagen builds a third assembly plant, it would not necessarily be close to the plants in Shanghai and Changchun, Leissner noted. The Chinese government is promoting industrial development in rural central China, where wages are lower than in the coastal region.
"Wages in Shanghai and in Changchun are already higher than in central and eastern Europe," Leissner said.
Volkswagen was the first international automaker to establish a major presence in China.
The automaker's first Chinese assembly plant - Shanghai Volkswagen Automotive - began producing the Santana in 1985.
Last year that plant produced 302,000 cars. The automaker's second assembly plant was First Auto Works Volkswagen, in Changchun. Last year that factory built 208,000 units. This year Volkswagen hopes to increase the combined production capacity of its two joint ventures to 640,000 units.