New China plant to build Audi A3 in 2013

Production will commence at Audi’s new Foshan plant in southern China from 2013. The new factory is the second Audi plant in China and will be set up to the Audi A3.

The 100 hectare Foshan plant is currently being set-up as a full production facility with press shop, body shop, paint shop and assembly.

According to FAW-Volkswagen Automotive Company (FAW-VW), the new factory will employ around 4,000 people from 2013.

The FAW-VW joint venture, in which Audi has an interest together with its Chinese partner FAW and Volkswagen, will see an investment of around EUR $3 billion in China in products, production and sales of the Audi brand in the next five years.

Audi announced construction of the new site at a ceremony to held in Foshan on 1 December 2011.

“Our ties with China and our partner FAW date back more than 20 years,” chairman of the board of management of Audi AG, Rupert Stadler said at the ceremony.

“In order to be able to tackle future challenges together as well, we want to strengthen our presence significantly in China and further strengthen our strategic partnership. The new plant is an important milestone in our long-term growth strategy in China.”

In attendance was Audi AG chairman of the supervisory board, Professor Martin Winterkorn; FAW Group president, Xu Jianyi; FAW-VW president, An Tiecheng; and Guangdong province government representatives.

Audi’s China presence

Audi has been represented – along with its partner FAW – in the north Chinese city of Changchun for more than 20 years where it builds long-wheelbase versions of the Audi A4 and Audi A6 as well as the Audi Q5.

Production capacity in Changchun will increase to between 500,000 and 550,000 cars in the next few years, with a production volume of around 150,000 to 200,000 cars planned for Foshan, according to statement by the company.

The forecasted increase in production volume will mean that both plants together will have the potential to produce up to 700,000 cars a year.

A new member of the Audi A3 family is planned to be produced at the Foshan site.

Audi delivered 253,739 cars to customers in China (including Hong Kong) from January through October 2011; a reported 32 percent more than in the prior-year period.

The sales total is expected to exceed 300,000 cars for the first time by the end of the year.

Image: Volkswagen Group of America