VW teams up with FAW for new car unit

HELSINKI - Volkswagen AG (VW), Europe's largest carmaker, will spend 520 million euros ($622 million) to add a 10th plant in China as the country's car demand booms.

The new factory in Foshan, Guangdong province, will assemble 300,000 vehicles annually and open in 2013, Wolfsburg, Germany-based VW said on Wednesday.

The plant is part of VW's plan to double production capacity in China to 3 million vehicles within four years as the carmaker invests 6 billion euros in the country.