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After decades of fruitful cooperation withChina's automobile industry -- mostly through joint ventures,transnational auto giants are digging deeper into the world'slargest car market. German car maker Volkswagen AG, the biggest auto producer inEurope, is eyeing great potential in China's west after making afine living in the country's southern regions. Volkswagen on Monday signed a contract to build a plant inXinjiang Uygur autonomous region with China's Shanghai AutomobileIndustry Corporation (Group). Meanwhile, it agreed to a 25-yearextension of partnership with China FAW Group Corporation. The deal was sealed during German Chancellor Angela Merkel andChinese Premier Wen Jiabao's visit to Volkswagen headquarters inWolfsburg, 230 km west of the German capital of Berlin. During the tour, Wen said Sino-German cooperation in the carindustry is a very important part of all-round bilateralcooperation, voicing his belief that cooperation in this field willcontinue and attain a new level. China has been the world's biggest auto producer and consumerfor three consecutive years. With 27 percent of its cars sold in China last year, Volkswagensold a record 633,000 vehicles in the country in the first quarterof 2012. China has been the German company's largest single marketfor years. At present, auto production is over-centralized in China'scoastal and central areas, while west China will become thefastest-growing market in the near future, an official from the theNational Development and Reform Commission, the country's topeconomic planner, told Xinhua. He said it is courageous for Volkswagen to invest in the west,which lags behind other parts of the country in terms of theinvestment environment and human resources. Aanalysts said the move will be a win-win one as Volkswagenwill contribute to the local economy and increase jobopportunities, and on the other hand, the company will gain localmarket share. They said joint ventures still play a positive role inimproving the research and development ability of domesticcompanies, as well as providing products, technology and services. In an effort to transform its joint ventures into real carfactories from assembly plants, Volkswagen is working with its twojoint ventures to develop their own brands. Shanghai Volkswagen and FAW-Volkswagen plan to invest a record14 billion euros (18 billion U.S. dollars) in China from 2012 to2016. The money will be used to build environmentally friendlyplants and produce more efficient cars. Volkswagen's plants in Nanjing and Chengdu, and those underconstruction in Yizheng, Foshan and Ningbo will use advancedtechnology to achieve green production, in order to set up amilestone in China's auto industry, the company told Xinhua. The e-commerce company in China offers quality products such as Custom Shaped Balloons Manufacturer , China Political Advertising Balloon, and more. For more , please visit Giant Advertising Balloon today!
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