It’s a huge week for the Chinese auto industry with most of the headlines emerging from the biennial Beijing Motor Show – but at least one major story is coming from halfway around the world.
During a meeting at corporate headquarters in Wolfsburg, Germany, Volkswagen AG officials revealed to Chinese Premier Wen Jiabao and German Chancellor Dr. Angela Merkel plans for a major expansion in the automaker’s long-running partnership with China First Automobile Group. That includes a new plant in Urumqi, capital of the western province of Xinjiang.
That in itself is significant, supporting Chinese government efforts to spread the country’s economic boom and — in turn — create new markets for automakers like VW.
“A 30-year success story unites Volkswagen and China,” Volkswagen AG CEO Dr. Martin Winterkorn told the visiting officials. “As a pioneer of the Chinese automotive industry we gave important momentum to China’s industrial development and to German-Sino economic relations. Together with our partners we will now carry this pioneering spirit into Western China as well.”