Volkswagen to build factory in Indonesia

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N6WSCA08PJGerman carmaker Volkswagen AG plans to build a factory worth $140 million in Cikarang in 2015, said Jonas Cendana, a director at Volkswagen Indonesia, according to local press reports.

He added that the plan to build the factory, which was scheduled to come up this year, has been delayed due to the weakening of rupiah against the euro and political uncertainty.

Volkswagen in Indonesia does not have a significant market share. Like most other European car manufacturers, Volkswagen produces more sedan cars than multi-purpose vehicle which are in higher demand in Indonesia, which could indicate that the new factory will assemble MPVs.

The news came after it emerged that Volkswagen plans to invest 1 billion euros ($1.29 billion) to build a new manufacturing plant to produce fuel efficient cars in Thailand, a German magazine said on September 6.

The Thai government is expected to grant Volkswagen approval for the plant this week, Wirtschaftswoche magazine reported, without citing sources.

The Thai plant, which will build 1.4 liter petrol engine cars and which could turn out up to 300,000 vehicles per year at full capacity, is due to go on line by 2019, the magazine said, adding that part of the production would be destined for other markets in the region.

 

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German carmaker Volkswagen AG plans to build a factory worth $140 million in Cikarang in 2015, said Jonas Cendana, a director at Volkswagen Indonesia, according to local press reports. He added that the plan to build the factory, which was scheduled to come up this year, has been delayed due to the weakening of rupiah against the euro and political uncertainty. Volkswagen in Indonesia does not have a significant market share. Like most other European car manufacturers, Volkswagen produces more sedan cars than multi-purpose vehicle which are in higher demand in Indonesia, which could indicate that the new factory will...

Reading Time: 1 minute

N6WSCA08PJGerman carmaker Volkswagen AG plans to build a factory worth $140 million in Cikarang in 2015, said Jonas Cendana, a director at Volkswagen Indonesia, according to local press reports.

He added that the plan to build the factory, which was scheduled to come up this year, has been delayed due to the weakening of rupiah against the euro and political uncertainty.

Volkswagen in Indonesia does not have a significant market share. Like most other European car manufacturers, Volkswagen produces more sedan cars than multi-purpose vehicle which are in higher demand in Indonesia, which could indicate that the new factory will assemble MPVs.

The news came after it emerged that Volkswagen plans to invest 1 billion euros ($1.29 billion) to build a new manufacturing plant to produce fuel efficient cars in Thailand, a German magazine said on September 6.

The Thai government is expected to grant Volkswagen approval for the plant this week, Wirtschaftswoche magazine reported, without citing sources.

The Thai plant, which will build 1.4 liter petrol engine cars and which could turn out up to 300,000 vehicles per year at full capacity, is due to go on line by 2019, the magazine said, adding that part of the production would be destined for other markets in the region.

 

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