The Volkswagen Group expands production capacity in the promising Chinese market. Following the foundation of "Volkswagen FAW Platform Company Ltd." In Changchun, which manufactures chassis components for the joint venture companies producing automobiles, the contract for two engine joint ventures are signed on December 6. From 2006, "FAW Engine (Dalian) Company Ltd." will focus on building low-emission engines for mid-class vehicles, while "Shanghai Volkswagen Powertrain Company Ltd." will manufacture engines for compact cars. With these projects, Volkswagen closes the capacity gap triggered by the boom in demand and simultaneously increases local content of the models produced in China. "Volkswagen (China) Investment Company Ltd." holds 60% of the share capital of these newly-founded companies.