VW to Build Plant in Indonesia image

Back in March VW told the Indonesian president Mr. Susilo Bambang Yudhoyono that it plans to build a plant in the country.

Otomotif.kompas.com says that construction of the new Indonesian plant might begin sometime in 2014. To be more efficient VW also plans to source most part of the components locally and according to anonymous sources the automaker might have already chosen two vendors to work with. Mr. Andrew Nasuri, CEO VW Indonesia, said that the vehicles built here will be according to the European standards.

He added that this plant will be a production hub for the markets in Southeast Asia and will also be of utmost importance for VW’s plan to become the largest automaker in the world by 2018. To build this facility VW has created a joint venture with Indomobil Group, which has already purchased a 60-acre area for the construction. The new plant will give VW the opportunity to expand in the domestic market and to take part at the Low Cost Green Car program.

“To be competitive, the production should be here. Without Indonesia, target to be the biggest brand in the world by 2018 will be difficult to achieve. Preparation is now being done, until now there are two approved suppliers”, said Andrew in Puri Indah, West Jakarta

Source: indianaautoblog.com