Volkswagen to build production facility in Thailand

[MJP]

Great! Can they make all the old Mexican stuff and do custom jobs too please?

Edited September 2, 2014 by MJP

[xen]

Perhaps VW is wanting to take advantage of the free trade agreements with Thailand, the US and Aus and possibly more countries. Once they establish manufacture of VW then Audi being a part of VW will follow.

I would agree with the newer the VW the worse they are. We have had the VW Caddy in Australia and problems with the DSG gearbox are well known as well as the turbo on the diesel . Both very expensive to repair. If it was not for this the caddy would be a great vehicle for Thailand , cheap in fuel,comfortable, quick and handles well, plus good cargo space .

[Cake Monster]

With world sales by other large marques , such as Toyota, Subaru and Nissan falling between 12% and 15%, VW may get permission for their factory, but that does not mean they will neccessarily build it right away.

Many manufacturers are now considering mothballing plants around the world, or closing them all together, due to lack of global demand.

[keemapoot]

With world sales by other large marques , such as Toyota, Subaru and Nissan falling between 12% and 15%, VW may get permission for their factory, but that does not mean they will neccessarily build it right away.

Many manufacturers are now considering mothballing plants around the world, or closing them all together, due to lack of global demand.

Yes, and I wouldn't read too much into this that this indicates a plan to compete in the Thai market. They may just be using the Thailand advantages of a production base for export to the important growth markets like Indonesia in the region. So, it may indeed be more of an export market focus than domestic market focus. They may not be too concerned with competing on price in Thailand if sales targets and market share projections are modest.

[BSJ]

I think it is sad...really! Thailand will get the eco dross models which are made with the same concepts in mind as refrigerators and washing machines.

At least you will get a good 8 or 10 trouble free years from your fridge or washing machine!

[Cake Monster]

Why would they export to Indonesia, and other important markets from Thailand ?

Surely, from a business perspective, VW would have greatly reduced costs by manufacturing in Indonesia and then exporting from there.

Or is it that the BOI incentives to vehicle manufacturers are very lucrative here - better than Indonesia.

All I know, is that several large Marque are reducing Cap-Ex here and proposing plants in other more competative SE Asia nations

[hugh2121]

Hmmmmmmmmmmm! 25 km/ltr??????????????????

[keemapoot]

Why would they export to Indonesia, and other important markets from Thailand ?

Surely, from a business perspective, VW would have greatly reduced costs by manufacturing in Indonesia and then exporting from there.

Or is it that the BOI incentives to vehicle manufacturers are very lucrative here - better than Indonesia.

All I know, is that several large Marque are reducing Cap-Ex here and proposing plants in other more competative SE Asia nations

Because of Asean import tax structure. Basically, manufacturers can choose generally Thailand, Phillipines, Indo or Malaysia & export to other Asean countries as if they made it in the target country. Thailand has an edge over all other Asean countries as a manufacturing base. The reduction of CAPEX in Thailand is part of a general downturn in the auto industry and not indicative of any souring on Thailand as the production base. However, Toyota did famously warn that if Thailand didn't get its sh*t together during the recent political stalemate they would consider moving to Indo. That seems to have abated with the Junta led government now.

[KhunBENQ]

Hmmmmmmmmmmm! 25 km/ltr??????????????????

Where is the problem?

Nothing brandnew.

[natway09]

Amongst all the doom & gloom, some brighter news.

Congratulations to VW, & Thailand.

Every success

[ABCer]

I wish I shared TV posters enthusiasm.

Not that I do not like VW cars.

But my observation tells me that cars produced in Thailand are much cheaper to buy anywhere but in Thailand.

Wonder why the joy and who gets buyer's money?

P.S. No, I'm not a miser. I drive a car bought here new.

Edited September 3, 2014 by ABCer

[MJP]

I drive an 11 year old VW in Blighty, a Passat diesel thing with full service history. To be honest the old Citroen I had yonks back gave me far less trouble, none in fact. This thing is costing a fortune each time it comes up for an MOT and its only got 50k miles on it!!!

Love of old Dub's, but I wouldn't buy another VW.

Edited September 3, 2014 by MJP

[pedro01]

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

That's because of the way BMW operate. My understanding is they basically flat pack the cars and just assemble here with few locally sourced parts. That attracts higher taxes.

I guess we have to see how VW will operate

Sent from my iPhone using Thaivisa Connect Thailand

[JAG]

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.

Oh dear, does that mean more people charging around the place, headlights blazing and horns blaring under the mistaken impression that they are Peter O'Toole in "Night of the Generals"?

[joepattaya1961]

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

Maybe not even the Polo, but more the Lupo or the Up.

[Peterphuket]

Hmmmmmmmmmmm! 25 km/ltr??????????????????

18 years ago I owned a Golf TDI and it was already possible to drive 20km/ltr with that car.

[GAZZPA]

Very good news for the Thai economy if this goes ahead. They need more of this to help balance the difficult time ahead.