Volkswagen plans to build factory in Thailand

Reading Time: 2 minutes

VolkswagenGerman car manufacturer Volkswagen (VW) is seeking to participate in a government programme offering tax exemptions for automakers investing at least $200 million in local manufacturing, Bloomberg reported.

Annual production must reach at least 100,000 cars in the fourth year after starting operations, and manufacturing must begin by 2019, in order to receive the incentives. The programme from the industry ministry includes vehicle assembly, components and engine production. Car makers had until March 31 to apply, according to a ministry statement from last October.

“VW has always been one of the manufacturers trying to position itself globally,” Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler, said.

“Current sales volumes in Southeast Asia are much smaller than in China or the US,but it’s one of the regions where Japanese carmakers are significantly ahead of VW, so there’s room for growth,” he added.

The car maker anticipates industry-wide sales will increase on average 4.5 per cent annually through 2018 in the region comprising Indonesia, Thailand, Malaysia, the Philippines and some smaller countries in the area. VW started assembling Passat sedans in Malaysia with local automaker DRB-Hicom Bhd in 2012.

VW sees a “strong market opportunity” in Southeast Asia, Chief Financial Officer Hans Dieter Poetsch said in a presentation published on the company’s website last week. But the company has not made a final decision yet on producing vehicles in Thailand as the exact terms and conditions may still change, the report said. VW declined to comment on any plans it has for the country.

Chief Executive Officer Martin Winterkorn said in March that the automaker may sell more than 10 million vehicles worldwide in 2014, four years earlier than initially planned, as VW seeks to overtake Toyota as the industry leader by 2018.

VW delivered 9.73 million vehicles in 2013 as a boost in Chinese demand helped it surpass General Motors to become the world’s second-biggest car maker. VW, which also owns the Audi and Porsche premium marques, Seat and Skoda mass-market nameplates, as well as Bentley, Bugatti, Lamborghini, Ducati, MAN, Scania and Neoplan, will introduce more than 100 models through 2015. VW outlined plans in November 2013 to invest 84.2 billion euros through 2018 to build new models and expand production.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

German car manufacturer Volkswagen (VW) is seeking to participate in a government programme offering tax exemptions for automakers investing at least $200 million in local manufacturing, Bloomberg reported.

Reading Time: 2 minutes

VolkswagenGerman car manufacturer Volkswagen (VW) is seeking to participate in a government programme offering tax exemptions for automakers investing at least $200 million in local manufacturing, Bloomberg reported.

Annual production must reach at least 100,000 cars in the fourth year after starting operations, and manufacturing must begin by 2019, in order to receive the incentives. The programme from the industry ministry includes vehicle assembly, components and engine production. Car makers had until March 31 to apply, according to a ministry statement from last October.

“VW has always been one of the manufacturers trying to position itself globally,” Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler, said.

“Current sales volumes in Southeast Asia are much smaller than in China or the US,but it’s one of the regions where Japanese carmakers are significantly ahead of VW, so there’s room for growth,” he added.

The car maker anticipates industry-wide sales will increase on average 4.5 per cent annually through 2018 in the region comprising Indonesia, Thailand, Malaysia, the Philippines and some smaller countries in the area. VW started assembling Passat sedans in Malaysia with local automaker DRB-Hicom Bhd in 2012.

VW sees a “strong market opportunity” in Southeast Asia, Chief Financial Officer Hans Dieter Poetsch said in a presentation published on the company’s website last week. But the company has not made a final decision yet on producing vehicles in Thailand as the exact terms and conditions may still change, the report said. VW declined to comment on any plans it has for the country.

Chief Executive Officer Martin Winterkorn said in March that the automaker may sell more than 10 million vehicles worldwide in 2014, four years earlier than initially planned, as VW seeks to overtake Toyota as the industry leader by 2018.

VW delivered 9.73 million vehicles in 2013 as a boost in Chinese demand helped it surpass General Motors to become the world’s second-biggest car maker. VW, which also owns the Audi and Porsche premium marques, Seat and Skoda mass-market nameplates, as well as Bentley, Bugatti, Lamborghini, Ducati, MAN, Scania and Neoplan, will introduce more than 100 models through 2015. VW outlined plans in November 2013 to invest 84.2 billion euros through 2018 to build new models and expand production.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid