Ford, Hyundai and VW have all slated new plants for construction in China
Despite government probes and speculation over a general slowdown, the world’s largest automakers are increasing their investments in China. The global car giants are all planning two new plants each to service growing demand from the region.
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Engines of growth Image: VolkswagenVolkswagen Group has earmarked €2bn ($2.7bn) for two new vehicle plants as part of an €18.2bn plan to expand capacity in the market through 2018.
The German vehicle group now claims China is its largest and most important market, accounting for 1.51m vehicle deliveries in the first five months of the year.
Hyundai Motor Co will build on its existing three plants in the region with two new factories. One will be remodelled from a car assembly plant belonging to a Chinese partner, while the other will be built from scratch.
The South Korean manufacturer will build one plant in the southwestern municipality of Chongqing and is under pressure to build another in northeast Hebei province.
Although Ford was a late entrant to the region, it has also seen sales soar over the last few years. The US carmaker will add another plant to its existing two locations in Chongqing and will build another in the eastern city of Hangzhou.
The carmaker will also expand its product line-up by introducing the Ford Escort compact car, the Ford Everest midsize SUV and the iconic Ford Mustang pony in early 2015.