Volkswagen plant opened new chapter

　　Recently, it has been confirmed that Volkswagen will build two new plants in Foshan, Guangdong province. In Southern strategy released by Volkswagen during last year’s Guangzhou Auto Show, it is only the first shot of the campaign to build new plants and expand deeply into the South China market dominated by Japanese auto makers. And to localize the new plants in Foshan opened a new chapter of the layout and reintegration of Guangzhou Automobile industry.

　　Coastal cities are the first choice

　　Last year, Fiat announced cooperation with Guangzhou Automobile Group to take a slice of China auto market that has gained the fastest growth globally. Poor Nanjing Fiat then came to an end. The good news is Fiat’s new models can be introduced to China simultaneously as to other countries to replace old-fashioned Palio and Siena. Then the only thing left is to choose a site.

　　According to the experience of joint ventures, though localization has been achieved, most of the spare parts have to be imported. Therefore, the conveniences and costs of transportation will certainly be taken into consideration. Such bulky things like Auto parts should be transported by sea rather than by plane or train.

　　As a result, coastal cities naturally become the first choice. Changchun has Dalian Port while Beijing and Shanghai owns Tianjin Port and Huangpu Port respectively. Not to mention Guangzhou that has been the southern gateway of China since ancient times. Of course, the domestic brands do not demand much in this regard.

　　As the famous saying goes, the land owner always calls the tune; Guangzhou Automobile Group is the one who has the right to speak. Therefore, the new plant was most probably be set up in Guangzhou. But then for various reasons, Fiat finally settled site in Changsha, Hunan.

　　Supposed the site was settled in Guangzhou, which place would be the best to choose?

　　An analysis of Guangzhou Automobile Industry

　　The east

　　Guangzhou Honda Automobile set up the first plant in Huangpu District in the east of in Guangzhou in the year of 1998. Then in 2004 a second factory was established in Zengcheng, a county-level city under the management of Guangzhou. If the tragic cooperation with the French Peugeot in the early years is not included, the founding of Guangzhou Automobile Guangzhou Honda is actually the beginning of the development of this city.

　　The north

　　In 2003, Dongfeng Nissan officially set up a plant in Huadu District of Guangzhou. Huadu was designated as a county belong to Guangzhou in April 1960. In June 18, 1993, Huadu became a county-level city under the management of Guangzhou commissioned by the Guangdong Provincial Government. In May 21, 2000 Huadu became a district of Guangzhou. Just last week, Nissan’s second plant, which would also be its largest globally was also the located in Guangzhou, which showed that the attractiveness of this city.

　　The south

　　Guangzhou Toyota set up a factory in 2004 in Guangzhou Nansha District. Although it was not until the year of 20006 that the first Camry came into the market, this B-Class model was really shocking. In May 12, 1993, State Council of the People’s Republic of China approved the establishment of the Guangzhou Nansha Economic and Technological Development Zone in Guangzhou City. In 2002, within the scope of overall responsibility for development zone planning, construction, management and investment as well as with the Guangzhou municipal approval of administrative privileges, Guangzhou Headquarters of Nansha Development Zone was founded by Guangzhou municipal government and municipal Party committee to speed up the construction and development of Nansha Development Zone. Moreover, the government even built a highway and a subway line for Nansha District. Besides, with Nansha port on the side, can the geographic location can be said very advantageous.

　　The west

　　It has been mentioned above that Fiat located its new plant in Foshan, a city west of Guangzhou. In recent years, the Guangzhou government always put forward the concept of “big Guangzhou”, which demonstrated the significant status of Foshan. Referring to Foshan’s auto industry, may many people may only know about Fudi and Futian. In fact many Japanese car parts factory are now quietly developing there, such as If the gearbox producer Japanese Aisin and wheel hub marker ENNKI. The establishment of Volkswagen’s new plants of in Foshan can be said deep into the competitors’ hinterland and a great challenge to the three Japanese giants in Southern China.

　　Thus, Honda is in the east, Nissan the north, Toyota the south and Volkswagen the west, which opened a new chapter of the new layout of Guangzhou’s auto industry. Besides, Guangzhou has become one of the most powerful cities in the China auto industry.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click:

　　http://guangzhou.auto.sohu.com/20100512/n272085587.shtml