Volkswagen AG receives government approval for new factory in Thailand image

Germany’s Volkswagen AG, the largest automaker in Europe and the second-biggest in the world, has recently received the approval from Thai authorities to construct a new assembly facility in the country.

The carmaker had actually been expecting the positive result for months, after delays dragged the company’s desire to build a manufacturing factory near Bangkok that would produce fuel-efficient models. According to a VW AG spokesperson, the company was given the positive news and their next move is to reassess the situation – they have actually have not come to any conclusion on whether to actually start building the factory, which is a confirmation of a recent report coming from German weekly magazine WirtschaftsWoche. People that have knowledge of the plans reported for Reuters last year that VW opted to apply for its first Thai plant as it mulled to take advantage of the country’s tax breaks that also stirred the interest and investment of General Motors and Ford.

According to the media reports surrounding the planned production facility, the factory would be worth one billion euro and would focus on building 1.4 litre petrol engine models – with a forecasted total capacity of up to 300,000 units annually. Volkswagen has already set a firm foothold in the region, with ongoing production of the Passat, Polo and Jetta cars in Malaysia together with a local business partner and also has a new factory in Indonesia set to take advantage of the country’s growing demand for European cars.

Via Reuters