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Volkswagen FAW Engine (Dalian) Co Ltd, co-invested by Germany's Volkswagen Group and China's First Automotive Works Corp (FAW), recently started production.

Volkswagen said in a statement that the automaker and its partner FAW had invested 840 million yuan (US$108.77 million) in the plant as of the end of 2006. Planned investment until 2011 will top 1.5 billion yuan.

The engine venture is 60 percent owned by Volkswagen (China) Investment Co Ltd, with FAW holding the remaining stake. The joint venture is designed to produce 300,000 sets of engines every year.

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The full text is available in the April Issue of AutoChina.

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