VW to build auto plant in China

[United Press International]

WOLFSBURG, Germany, May 3 (UPI) -- German automaker
Volkswagen AG will partner with a Chinese automaker to build an
automotive plant near Shanghai, the Detroit Free Press reported.
Volkswagen, Europe's largest auto manufacturer, based in
Wolfsburg, Germany, said it will partner with Shanghai Automotive
Industry Corp. to increase sales in China's booming auto market.
The plant will be able to produce 150,000 vehicles a year,
and will increase production to 1.6 million vehicles annually by
2008. Volkswagen and Shanghai Automotive will each own half of the
vehicles produced.
Volkswagen plans to issue about $180 million worth of shares
to boost its capital and increase its stake in the joint venture.
Volkswagen already controls more than a third of the Chinese
market.