The new manufacturing facility, which will start production in 2014, will cost 300 million euros ($377 million) and create 1,500 jobs, the person said, who asked not to be identified because the carmaker has not yet made an official announcement. A company spokesman declined to comment.
The German manufacturer produces more than 20 models in China for its VW, Skoda and Audi brands. The Wolfsburg, Germany- based automaker plans to invest 14 billion euros on Chinese production and models by 2016. VW sold 2.6 million vehicles in the Asia-Pacific region last year.
VW already runs 11 auto factories in China, with four plants currently being set up.
German newspaper Frankfurter Allgemeine Zeitung reported earlier today the China transmission plant investment.
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