BEIJING – Work started May 26 on a new engine plant for the Volkswagen group in the northeast China coastal city of Dalian.
The factory will make engines for Volkswagen’s two joint ventures in China, and possibly also for Volkswagen’s global network at a future date. The plant is expected to start production at the beginning of 2007. It will have an initial annual capacity of 150,000 units.
VW currently can make 900,000 cars annually in China. It plans to expand its annual capacity to 1.5-1.6 million units by 2008.
The engine plant’s capacity will be expanded along with Volkswagen’s production capacity.
l Ford Motor Co. has received approval from the Chinese government to build an engine plant in the east China city of Nanjing. The plant initially will make engines for Ford and Mazda cars assembled in China, but eventually it could make engines for export.