VW to build plug-in hybrid cars in China as pollution reforms open the market: sources

(planet-ark, 4 Apr 2014) Volkswagen plans to make plug-in cars in China, company sources say, seeing a big potential market as the country's leaders fight hazardous levels of air pollution with measures that include boosting green power.

VW will announce its plans at the Beijing auto show on April 19-20 and will build the plug-in hybrids - a combined petrol engine and electric motor that can travel longer distances on battery power than ordinary hybrids - with their Chinese partner First Automotive Works, the sources said on Thursday.

Production is likely to be at its new assembly plant in Foshan, southern China, the sources told Reuters on condition they not be identified because the plans are still confidential.

VW declined to comment.

China's Premier Li Keqiang said last month the country would "declare war" on pollution as part of efforts to upgrade the economy and shift the focus away from heavy industry.

The government announced a 10 billion yuan ($1.61 billion) fund to help change the way it produces and consumes energy. It aims to promote green and low-carbon technology to cut fossil fuel use and control coal consumption.

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planet-ark, 4 Apr 2014: VW to build plug-in hybrid cars in China as pollution reforms open the market: sources