Volkswagen to build production facility in Thailand

FRANKFURT: -- German carmaker Volkswagen is expecting the go-ahead for a factory in Thailand, newspaper reports have claimed. The company aims to strengthen its position in markets with enormous growth prospects.

VW is only days away from getting permission to build a car factory in Thailand, Germany's daily Frankfurter Allgemeine Zeitung (FAZ) reported Monday.

It cited Thai investment authority officials as saying a corresponding application by the Wolfsburg-based multi-brand company could be decided on as soon as next week.

The newspaper added the production facility in question would be located near the port of Bangkok. Europe's largest automaker had applied for state subsidies for the project in spring of this year.

Rising to the challenge

The report claimed VW was aiming to make its investment within the local "Eco2 Program," which it said offered considerable tax breaks and reduced duty payments, if the company agreed to produce low-fuel vehicles with a consumption of little over four liters of petrol per 100 kilometer.

Full story: http://www.dw.de/volkswagen-to-build-production-facility-in-thailand/a-17893915

-- DW 2014-09-02

Big boost for the Thai economy

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Unfortunately it sounds as though it will just be the Polo, not the Golf

Maybe they will also produce their pick-up truck Amarok, but I do hope they will build the Passat and the Golf. Great cars, their only problem has been the price, with which they could not compete the Japanese cars, although technically far superior and more friendly to the environment.

Good, that way we will see something else than Japanese cars.

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

Not the Touareg then?!

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

lived in Germany for nearly 20 years and in that time I had 3 golfs and never had a problem other than parts wearing out.

Might get the Porsche a bit cheaper

Not the Touareg then?!

Unfortunately, I suppose not. Sounds like production of more eco-boxes.

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

lived in Germany for nearly 20 years and in that time I had 3 golfs and never had a problem other than parts wearing out.

same me had a Beetle and done over 750000 ks and never had a problem either but that was a long time ago

I guess a Bugatti Veyron is out of the question (???)

An article a little earlier in the year said that they'd be making the Beetle here.

Like Hitler, Thailand needs a Perople's car.

Like Hitler, Thailand needs a Perople's car.

Like the Philippines, Thailand doesn't need a crooked dictator trying to set up a family dynastic dictatorship.

VW probably more confident now the corrupt Shin regime isn't allowing the killing and attacks against all who dare oppose them.

Good for VW and Thailand.

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

Are you sure it wasn't the VW Down?

Good and very nice morning for VW Group.

As far as here they didn't compute with this huge market, where people can buy new car very easy.

I hope they produce Golf and Amarok also, not only Polo or Lupo (Up) matchboxes.

Edited September 2, 201411 yr by Loles

Good it will come to Thailand, especially the TDI, in my experience one of the best diesel engines in the world.

Its about time. VW already has the major market share in China and could probably penetrate the market in SE more with a production base in Thailand. For some their styling appears rather chunky but for me they build solid, well-engineered cars that can easily compete with the Japanese in terms of function, value and reliability. I'd be disappointed though if they can't or won't price their cars more competitively with the Japanese.

Trying to keep prices high based on the superficial asian values for german brands would be in the long term a mistake as Yontrakit in their greed has proven in the past.

Edited September 2, 201411 yr by smileydude

Like Hitler, Thailand needs a Perople's car.

Like the Philippines, Thailand doesn't need a crooked dictator trying to set up a family dynastic dictatorship.

VW probably more confident now the corrupt Shin regime isn't allowing the killing and attacks against all who dare oppose them.

Good for VW and Thailand.

I very much doubt that in a little over two months ago Volkswagen decided to setup shop in Thailand. These deals take years to come to fruition. Nice try to have a dig at Shinawatras but massive fail on your part.

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

lived in Germany for nearly 20 years and in that time I had 3 golfs and never had a problem other than parts wearing out.

I got told by a repair shop that the first Golfs were excellent but the later versions got weaker and weaker in their construction.

But of course I can't verify if that is true or just BS

They can make them here ,but don't count on them been any cheaper,

like when Kellogs began making corn flakes here,instead of been imported,

but the prices never dropped at all.

My daughter in UK bought herself a VW Up and has nothing but problems

with it,and according to the VW forum many others have problems too.

regards Worgeordie

lived in Germany for nearly 20 years and in that time I had 3 golfs and never had a problem other than parts wearing out.

I got told by a repair shop that the first Golfs were excellent but the later versions got weaker and weaker in their construction.

But of course I can't verify if that is true or just BS

yes the latest Golfs are rubbish as the engine is poorly designed .i had 1 where the engine was clapped out at 37,000 miles .the reason being that the spark plug coils made by Bosch kept failing due to the heat of the engine causing the electronic parts to fail . this led to a failure of the bearings and valves (misfiring ).i have had many Golfs and beatles over the years but they dont last like they used to any more.you dont see many Mk2 golfs around now at all .mk3 and 4 golfs will have a short lifespan too

a specialist independant VW garage confirmed that VWs are now complete short lifespan junk .

they were replacing engines with very low mileage

Edited September 2, 201411 yr by 3NUMBAS

This is more like the news or efforts the PM should focus in on. Good new for the economy.

Next week in Europe I Will be driving a Polo running on diesel consuming less than 5l/100kms

This car runs a lot smoother than the Nissan March my Thai wife likes so much.

Polo 10, March 1.

Time for Thailand to have decent Eco cars.

Edited September 2, 201411 yr by tartempion

Like Hitler, Thailand needs a Perople's car.

Like the Philippines, Thailand doesn't need a crooked dictator trying to set up a family dynastic dictatorship.

VW probably more confident now the corrupt Shin regime isn't allowing the killing and attacks against all who dare oppose them.

Good for VW and Thailand.

I very much doubt that in a little over two months ago Volkswagen decided to setup shop in Thailand. These deals take years to come to fruition. Nice try to have a dig at Shinawatras but massive fail on your part.

Actually, VW AG had planned to take over the market from the same cocky importer family/dynasty that lost BMW years ago. It was all because of the bad after sales service. It was announced back in 2011. They are a couple years late coming in because of the political situation and lack of finding replacement dealers and service providers.

They realized back before 2011 that they lost out on producing the Amarok and Polo in Thailand.

By the way, Audi is coming next.

Like Hitler, Thailand needs a Perople's car.

Like the Philippines, Thailand doesn't need a crooked dictator trying to set up a family dynastic dictatorship.

VW probably more confident now the corrupt Shin regime isn't allowing the killing and attacks against all who dare oppose them.

Good for VW and Thailand.

I very much doubt that in a little over two months ago Volkswagen decided to setup shop in Thailand. These deals take years to come to fruition. Nice try to have a dig at Shinawatras but massive fail on your part.

I'm sure you're right, it would be a long term plan. But the performance of the PTP government, how they "handled" the floods,the lack of law and order in the latter stages of their days in government and caretaker ship would have been noted. Of course, all may be a coincidence of timing, which given your fondness for the Shins is convenient.

BMW is also assembled in Thailand and yet prices are still over the top, so not really sure if VW being made locally would offer reasonable pricing or taxed through the roof

Does this mean that I can buy a VW at a reduced cost??

BMW is also assembled in Thailand and yet prices are still over the top, so not really sure if VW being made locally would offer reasonable pricing or taxed through the roof

VW's bid to be a major player in the U.S. has failed miserably. Now granted, the U.S. is the most competitive car market in the world. VW's chairman has admitted that they understand China and Brazil, but not the U.S. very well. VW is indeed a monster as the world's 3rd largest auto maker, and nailed it in China and Brazil.

BUT... Thailand is a unique market dominated by seemingly illogical consumer brand loyalty to the long established top 2 Japanese brands. I'm sure all the other tier 2 brands have all resigned themselves to being bit players and being able to acquire limited market share. VW has a long tough road ahead here, and I don't expect them to be competitive price-wise for some time because of the advanced local supply chains by the other existing locally made brands.

Big boost for the Thai economy

. Europe's largest automaker had applied for state subsidies for the project in spring of this year.