FAW Jilin Automobile, the subsidiary of FAW Group, was once tycoon in mini vehicle business, and is now welcoming its new opportunity to prosper.

According to the latest news, Volkswagen is planning to launch the project of budget car manufacture in the new production site of FAW Jilin. The overall cost is being assessed, and new vehicles are expected to face customers before 2018.

One of the reasons Volkswagen chose FAW Jilin is that FAW Jilin is experienced in making mini cars. FAW Jilin made the first mini car in China in 1981. During late 1990s, FAW Jiabao swept the country. And in 2009, FAW Jilin became the production base for mini cars.

The second reason is the awesome productive capacity of FAW Jilin. The two plants of FAW Jilin have a planned area of 1.3 million square meters, 0.7 million square meters of which have been used for production and the rest 0.6 million square meters of which are yet to undergo construction. Meanwhile, 80% of the 0.7-million-square-meter first-phase plant, which can produce 0.2 million vehicles per year, is idle.

Thus those in the industry commented that via such choice not only Volkswagen now has the place to do the manufacturing and avoid waste of constructing a new plant, but also FAW Jilin’s manufacturing site will be fully used. Moreover, the joint venture project may promote the development of FAW’s self-owned brands.

Volkswagen plans to sell its cheap car at ￥55,000 to ￥85,000. But if they really make cars using out-dated engine, the vehicles may not be as competitive as those made by other self-owned brands using new powertrains.

Source:Gasgoo