Volkswagen to build factory in Indonesia

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...

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.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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