Denied to take the initiative to recognize from the FAW – Volkswagen will be building a new factory in Guangdong had been no secret. From Shunde, Zengcheng, Dongguan, Zhanjiang to South china Sea, the media is also a step closer to reality.

FAW – Volkswagen in Canton plant’s intention was clear, the Japanese car market in South China the world planted a flag in order to achieve market share on its upgrade of the South, as soon as possible “2018 Strategic Plan”. After all, Chengdu, Changchun and currently has two production bases in the FAW vehicle – the public in 2009 to make enough effort and production, and only less than 700,000 sales. To achieve the 2018 goal of 1 million sales, expansion is inevitable.

From a national perspective, the public share of the market in the South compared to other places at least, also the largest of its potential. In 2008, the public only in the South China market share of 12%, far lower than the national share of about 18%.

This also means that, when FAW – Volkswagen and Shanghai Volkswagen South plant construction is completed, the public in Shanghai, Changchun, Chengdu, Nanjing, Guangdong will have a production base. Can be said that the public has the flag was filled with land. China’s success will determine whether or not crowned as the world Car Industry top.

However, the FAW – Volkswagen in Canton plant is not without risk. Specifically, in the south plant can save the cost of vehicle logistics can get local government support, enhanced influence in Guangdong.

However, the challenges are obvious. First of all, Japanese cars in Guangdong’s influence in a day turns into, the construction of the plant may not be able to shake in the short term the status of Japanese cars. Second, the FAW – the public had acquired products to the South? In fact this is the most important. Fuel-efficient Japanese cars are known for known for the reputation of Japanese cars in southern China consumers already carved deep scar. FAW – despite public TSI and DSG, but the cost is not low, how can seize market?

The rumors of a new brand SEAT is one of the options. Spanish brand Seat as a wholly owned subsidiary of the public, mainly in the Volkswagen Group platform to create dynamic and personalized products fit the market demand and the south is high. In addition, the SEAT brand as a new import market in the south will encounter resistance is relatively small.

But the advance will definitely be some of the existing product line into there, so the South can be rapidly effective strategy, or by SEAT brand in this new attack, then wait for the success of longer, cost more.

However, if the past is to take existing products, then sure, Volkswagen parts and components supporting the existing manufacturers certainly mature in the northeast, east more, so, in the vehicle logistics cost savings, while parts of the logistics costs are likely to increase this. Of course, I can take the time to find a new supporting business, but more than the initial pay is beyond doubt.

However, these small problems, where to resist the pace of public Nanzheng? Southern strategy and with the public compared to 2018 strategy, perhaps these are not difficulties.

It is noteworthy that, in public factories in Guangdong, the news settled, Nissan is also the world’s largest production base settled in Huadu announced.