Volkswagen to invest $2.7 billion in Chinese production site

By Rachel More11 Apr 2024Reuters1 Mins read88

Volkswagen is planning to expand its production and innovation hub in the city of Hefei in Anhui Province. People walk past an ID. Store X showroom of SAIC Volkswagen in Chengdu, Sichuan province, China January 10, 2021. Picture taken January 10, 2021. REUTERS/Yilei Sun/File Photo

BERLIN (Reuters) – Volkswagen announced on Thursday plans to invest 2.5 billion euros ($2.68 billion) in China to expand its production and innovation hub in the city of Hefei in Anhui Province.

Preparations are also being made for the production of the two Volkswagen brand models being developed together with Chinese partner XPENG to begin in 2026, it said.

Ralf Brandstaetter, Volkswagen Group’s management board member for China, said the Hefei site would help bring technologies to market around 30% faster as the carmaker boosts electric vehicle production there.

Organizations

Volkswagen ceded its title of best-selling car brand in China to local EV manufacturer BYD in late 2022 and has announced a series of new models to electrify its portfolio in China as it battles to regain ground.

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