It is reported that the southern province of Guangdong plans to continue to support Foshan Faw-Volkswagen and Shenzhen Changan Peugeot in 2012 with a total investment of CNY 14.2 billion in the automobile sector.

The Foshan project has total investment of CNY 13.3 billion with capacity of 300,000 units. Construction began last year and it will receive an additional investment of CNY 4.5 billion for civil design, equipment procurement and installation. The project is scheduled to be operational by August 2013 and it will be able to produce 300,000 vehicles in its first phrase.

Guangdong province will also invest in Changan Peugeot, Guangzhou Automobile Base and Zhuhai Yintong New Energy Automobile projects this year. The Changan project has total investment of CNY 8.4 billion and began construction last November. It is designed to have annual capacity of 200,000 vehicles.

According to the draft, investment in the Changan project will reach CNY 2.92 billion.

The Guangzhou Automobile Base project consists of an automobile industrial park, Guangzhou Huadu Automobile Industrial Base and an expansion project of Dongfeng Nissan passenger vehicles costing a total of CNY 2.47 billion in investment.

According to local authorities, the automobile sector in Guangzhou realized total value of CNY 276.54 billion in industrial output an increase of only 2.2% from the previous year.

(Sourced from China Business News)