VW to build new Shanghai plant

Volkswagen announced that it signed a letter of intent to build a new automobile factory near Shanghai with partner Shanghai Automotive Industry Corporation (SAIC). Volkswagen Chief Executive Bernd Pischetsrieder said that the German carmaker aims to produce and sell more than 800,000 automobiles in China in 2004, with the goal of doubling production and sales by 2008. The new plant is projected to have an initial annual production capacity of 150,000 vehicles and is scheduled to commence operations in 2006. Volkswagen is estimated to hold more than 30% of the Chinese automobile market.