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Jan 6, 2008

Volkswagen may build factory in Thailand


(Deutsche Presse-Agentur) - Automaker Volkswagen confirmed Friday it might build a factory in Thailand after the collapse of its efforts to enter the South-East Asian car market in tandem with Malaysian manufacturer Proton.

Two days after Bangkok news reports that Volkswagen had filed a detailed application in November for an 'eco-car' tax break, a company spokesman told Deutsche Presse-Agentur dpa that Volkswagen was waiting for a decision.

'We want to strengthen in South-East Asia,' he said at VW's Wolfsburg head office in Germany,

The Bangkok reports said Volkswagen had told the country's Board of Investment it would invest 27 billion baht (912 million dollars) in an assembly and parts plant at Samut Prakan, on the outskirts of Bangkok.

The reports did not say where the components would be imported from.

About 65 per cent of the small cars assembled at the plant would be exported from Thailand. Volkwagens are currently a rarity on South-East Asian roads, though the brand is a top manufacturer in China.


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