Volkswagen (VLKAY. OTCMKTS) is expanding their presence in China after signing a 25-year extension with China FAW Group, Reuters reported. With sales of almost 3.3 million cars in China last year, Volkswagen plans to invest EUR2 billion (US$2.53 billion) with FAW to build two more assembly plants, adding to their existing eight car-making factories and nine component plants. Despite China’s slowing growth car sales have been up 10% this year, leaving US and European manufacturers scrambling to increase access to the market, but unsatisfied with the current 50% ownership limit in joint venture companies run together with Chinese enterprises.
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