Volkswagen’s ambition is to become the world’s largest automaker by 2018 with annual sales of 10 million vehicles. To help make that goal a reality, the automaker will open eight new factories within seven years.
“By 2018 we will be operating about 70 factories,” said Volkswagen Group CEO Martin Winterkorn in an interview last week. That figure is an increase from the company’s 62 current factories. Winterkorn added that the company could realize its sales goal prior to 2018 “thanks to many new models and growing markets.”
With 40 of Volkswagen’s factories located in Europe, any new factories will likely be located outside of the automaker’s home region and close to where the cars produced will be sold. “We basically manufacture where the demand is,” said Winterkorn.
With the most potential to increase Volkswagen’s overall sales total, China will likely see two additional factories.
“In absolute terms, China’s overall market for cars and light commercial vehicles will grow the most,” Winterkorn said. “Growth of more than 50 percent to more than 28 million units is expected by 2018.”
High demand for the A4 and Q5 models in North America will likely lead to new Audi plant in the region. Insiders reveal that Mexico is the anticipated location due to tax considerations.
Finally, Winterkorn ruled out the idea of American-made Porsche vehicles.
“Like no other brand, Porsche stands for ‘made in Germany.’ I don’t think the issue will be on the agenda in the foreseeable future.”
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