FRANKFURT -- Volkswagen Group has confirmed a report in a German newspaper that said it will build a factory with an annual capacity of 300,000 vehicles in Changsa, Hunan province, China.
VW confirms report it will build factory in Changsa, China
The report in the Frankfurter Allgemeine Zeitung, published on Saturday, said the factory will be built with joint venture partner SAIC, adding that production is set to start as soon as 2016.
''VW confirms the report,'' a spokesman told Automotive News Europe today, adding that the group would make an official announcement later this week. The spokesman declined to discuss further details of which models would be produced at the plant.
Previous media reports estimated the plant's cost at 10 billion yuan (1.26 billion euros), citing data on the Changsha National Economic and Technical Development Zone's Web site.
The factory would add to the estimated annual vehicle capacity 2.38 million for VW Group's Chinese ventures with SAIC and FAW Group.
With sales of 2,812,825 vehicles last year, China was VW Group's largest market. The company has 12 car and component production plants in the country.
Automotive News Europe and Reuters contributed to this report
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