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2 Volkswagen plants to suspend production in China
Published in Saudi Press Agency on 14 - 12 - 2008


Two Chinese auto plants run by German
automaker Volkswagen AG through joint ventures are planning
to partly suspend production lines to conduct maintenance
work, state television reported Sunday, according to AP.
The news comes amid a huge slump in sales of vehicles in
China, the world's second-largest vehicle market after the
United States.
China's CCTV said in its midday bulletin that
FAW-Volkswagen Automobile Co. plans to suspend part of its
production at a plant in Changchun, the capital of Jilin
province in northeastern China, at the end of the year to
carry out maintenance.
Shanghai Volkswagen Automotive Co. will also suspend work
at its production line for half a month from mid-December
to early January, the Beijing News Daily reported.
The reports did not give details and calls to Volkswagen's
office in Beijing and the two joint venture companies rang
unanswered Sunday.
Volkswagen sold about 910,000 vehicles to customers in
China in 2007.
Vehicle sales in China fell 16 percent in November _ a
sharp reverse for China's automakers, which saw sales grow
by 18.5 percent in 2007. Global automakers were counting on
fast-growing Chinese sales to help drive revenue growth as
sales elsewhere weakened.
Industry Minister Li Yizhong said Friday Beijing is
considering ways to revive sales including cutting taxes,
offering low-interest loans or forcing older vehicles off
the road.


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