Chongqing popular outsourcing destination for European automotive industry: EU official

Filed in archive Outsourcing News on September 22, 2005

At the Asia-Interprise EU-China automotive Industry Meeting, the municipality of Chongqing in China has been cited by an EU delegate leader as a popular destination for European automotive outsourcing.

Project officer of the European Commission delegation Marisa Wyganowski cited Chongging's inexpensive and large labor pool as one of the reasons for its rise in the automotive outsourcing. She also noted that it is the "biggest base of automotive industry in west China".

According to Wang Xuesi, deputy secretary general of the Chongqing Municipal Government, Chongqing has a thriving automotive industry with an annual production capacity of 400,000 minivans, 200,000 sedans, 70,000 light-duty trucks and 20,000 heavy-duty trucks.

Wyganowski said, "In the last 10 years, China's auto production has grown 10 times faster than in Western countries, and it is expected that there will be a sustainable, steady and rapid growth in the demand for cars for at least another 20 years. This is an attractive prospect for European automotive companies whose own home market has slowed significantly over the past few years."

She also believed that more companies would establish joint ventures in Chongging or export automotive parts to Europe.

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