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2012-11-29 13:28

MAINTAINING TIES:The two auto companies have agreed to maintain ties to tap into the Asian market.

German auto maker VW ahs agreed to extend a joint venture with China's FAW Group to expand production in the world's largest auto market.

The partnership will now extend beyond the 2016 expiry date of a current agreement and expand "product portfolio and jointly develop new business activities".


Informed sources expect VW and FAW to sign a contract in 2013 to continue the joint venture for up to 25 years.

VW said its sales increased by 18% to 2.26 million in China in 2011 despite slowed growth in the market.

Earlier in 2012, the company said it planned to invest the equivalent of R150-billion by 2016 to develop new models and expand production at FAW-VW and a second joint venture with the Shanghai Automotive Industry Corp.The two joint ventures produce more than 20 VW, Skoda and Audi models in China.

FAW-VW was set up in the north-eastern city of Changchun in the late 1980's and has delivered more than six-million vehicles since production started in 1991.

Read more on:    audi  |  china  |  volkswagen

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