The 22 companies include international suppliers such as Johnson Controls, Magna Donnelly and Henkel, and domestic Chinese component makers such as Ningbo Huaxiang Electronics Co. and YAPP Automotive Parts Co.

These suppliers will invest a total of 3.9 billion yuan ($571.0 million) to build facilities in Chengdu Economic and Technology Development Zone to manufacture chassis structures, body pressings, bumpers, seats and instrument panels for the new car project.

"China has become the largest auto consuming market in the world. To satisfy rapidly growing demand, FAW-Volkswagen has decided to launch the first model of the Chengdu NCS Project in November 2011 rather than January 2012 as previously planned," said An Tiecheng, general manager of FAW-Volkswagen last week in Chengdu.

Codenamed NCS, the project will have an initial annual capacity of 150,000 cars, increasing to 350,000 cars eventually, according to FAW-Volkswagen.

"The NCS might be the Sagitar next generation or Jetta next generation or even another brand new model," Thomas Schneider, managing director of Volkswagen FAW Platform, told Automotive News China. He would not be more specific.

As one of the 22 companies contracted to supply the NGS project, Volkswagen FAW Platform is a joint venture between Volkswagen and FAW, producing front and rear axle modules, left/right fore axles, brake pedal assemblies and clutch pedal assemblies for FAW Volkswagen and Shanghai Volkswagen.

"With these suppliers introduced in the project, local content rate is expected to reach 80 percent or even higher," says Schneider.

FAW-Volkswagen is a joint venture between China FAW Group Co. and Volkswagen AG. From July 2007 until February this year, the Jetta was built at FAW's Chengdu plant. In March, FAW-Volkswagen acquired 100 percent interest of FAW's Chengdu plant.

To date, the Sagitar has been built at FAW-Volkwagen's Changchun plant.