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Wednesday, July 26, 2000, updated at 10:56(GMT+8)
Business  

Shanghai VW to Produce New Model Cars

Shanghai Volkswagen, China's leading car producer, will develop its fourth generation economy cars in order to expand production after China enters the World Trade Organisation (WTO).

The new models will be manufactured in the company's No. 1 Factory, where a 15-year assembly line for the production of Santana has been moved to No.2 Factory.

The assembly line in the No.1 Factory produced a total of 701, 500 cars over the past 15 years.

The assembly line will be upgraded in the well-equipped No.2 Factory, and produce both Santana and Santana 2000 models.

After China becomes a WTO member, tariffs on automobile imports will be lower and foreign cars are expected to flood the Chinese market.

A company executive said that Shanghai Volkswagen plans to produce 240,000 cars this year, including 210,000 Santana and Santana 2000, as well as 30,000 Passat cars.

The Number 2 Factory is capable of producing 300,000 automobiles annually, he said.

Shanghai Volkswagen Corp., a Sino-German joint venture, was founded in 1985.




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Shanghai Volkswagen, China's leading car producer, will develop its fourth generation economy cars in order to expand production after China enters the World Trade Organisation (WTO).

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