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VW China mulling to shut production of old generation Jetta

Joanne From www.gasgoo.com| May 16 , 2007

With an introduction of the new generation of Jetta in China next year, VW in mulling to stop the production of old generation Jettas,or to transfer the production from FAW-VW to Chengdu FAW.

FAW-Volkswagen, one of Volkswagen AG's joint ventures in China, is in full preparation for the launch of neo-Jetta, which would be the last model from FAW-VW by the year 2011. As projected, FAW-VW's production and sales will both reach 600,000 units, twice the current volume. With the contribution of profit declining for years, the company may consider the old generation of Jettas as a useless inheritance which would hinder the company to achieve its goals.

FAW-VW may discard the production of old generation Jettas to clear the way for the new model. Or it will transfer the production in the Changchun base to Chengdu FAW with a different marque.

The first VW Jetta in China was assembled in Dec, 1991, and since then the Jetta has stolen the Chinese customers' heart. It was the top-selling model last year in the passenger car sector, and the new generation will be the new profit-gainer.

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