VW to build Chinese plant

Volkswagen announced plans today to open a new factory in China next year to boost production capacity that the German car maker said it needs to meet the booming demand in the world’s fastest-growing market.

The new £130m (€197m) factory in Shanghai will be able to produce 150,000 cars a year, VW executives said at a news conference during Auto China 2004, China’s biggest car show. Construction will begin next week.