VW to invest 1 billion euros in Thai plant

[webfact]

VW to invest 1 billion euros in Thai plant
Reuters

THAILAND: -- Volkswagen plans to invest 1 billion euros (RM4 billion) to build a new manufacturing plant to produce fuel efficient cars in Thailand, a German magazine said on Saturday.

The Thai government is expected to grant Volkswagen approval for the plant on Tuesday, Wirtschaftswoche magazine reported, without citing sources.

The plant, which will build 1.4 litre petrol engine cars and which could turn out up to 300,000 vehicles per year at full capacity, is due to go on line by 2019, the magazine said, adding that part of the production would be destined for other markets in the region.

Sources familiar with the matter told Reuters in April the company had applied to build its first plant in Thailand, seeking to take advantage of tax breaks that had already attracted investment from Ford and General Motors.

Full story: http://www.themalaysianinsider.com/business/article/vw-to-invest-1-billion-euros-in-thai-plant

-- THE MALAYSIAN 2014-09-08

[tullynagardy]

That`s one expensive factory. Hope it doesnt flood

[casualbiker]

A small turbo diesel would be nice!

[clockman]

I hope they have researched the place to build this ? Not on a flood plain.

[Costas2008]

"The Thai government is expected to grant Volkswagen approval for the plant on Tuesday"

Oh, c'mon don't play difficult, you should have granted approval today.

[Ralf61]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

[EvilDrSomkid]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Which paper published this article? Read the OP again.

[96tehtarp]

This is great news. I wonder how many Thai people the factory will employ?

[Ralf61]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Which paper published this article? Read the OP again.

Yes, exactly, a German newspaper, and they announced the amount in RM = Ringgit Malay ( 1 EUR = 4 RM), ist's not "Reichsmark"

[whybother]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Which paper published this article? Read the OP again.

Yes, exactly, a German newspaper, and they announced the amount in RM = Ringgit Malay ( 1 EUR = 4 RM), ist's not "Reichsmark"

They've got a German newspaper named "The Malaysian"? They must have quite an expat community over there.

[Just1Voice]

This is great news. I wonder how many Thai people the factory will employ?

Minimal Thai. Normal useless "guard" at the gate, and cleaning crews. For actual workers, they'll be going for the Burmese with better work ethics (and lower pay).

[I knew this would happen]

A small turbo diesel would be nice!

GTI GTI GTI GTI

just dreaming i know...........

[MobileContent]

40 billion Baht?

Sorry I don't believe it or lets say over the 10 years

[whybother]

40 billion Baht?

Sorry I don't believe it or lets say over the 10 years

They spending $2.7 billion to build two factories in China and investing $25 billion over the next 5 years, so I'd say 40 billion baht to build a factory here seems about right.

http://www.bloomberg.com/news/2014-07-07/vw-to-spend-2-billion-euros-to-build-new-china-factories.html

[kartman]

Wonder how Ferdinand Piech will interact with Thais

[naboo]

Fantastic news. Can they build all the cars Thailand has missed out on, starting with the Golf GTI Mk1 (on the left).

[Woodsie888]

Wonder how Ferdinand Piech will interact with Thais

He will interact with them brilliantly.

He's known for his extraordinary patience.

No problem here as he already understands tiredness, sorry meant to say Thainess.

In reality, he'll never be at that end of the spectrum.

[Triplebank999]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Did you get lost reading the report? It was published by a The Malaysian Insider.

[KhunBENQ]

I wonder whether this story came up in the forum already?

Forget Malaysia.

This German newspaper source has been quoted by hundreds of articles wordwide.

So far its the only original source.

The process is going on for years.

A billion Euro is not expensive for a major car plant.

There will be no GTI made in Thailand.

Its all about micro/ECO cars.

[Tomtomtom69]

This is great news. I wonder how many Thai people the factory will employ?

Minimal Thai. Normal useless "guard" at the gate, and cleaning crews. For actual workers, they'll be going for the Burmese with better work ethics (and lower pay).

Burmese? I thought the whole idea behind the Thai government getting behind the local car manufacturing industry was to create jobs for local Thais, not foreigners. Since car manufacturing is a skilled job, most Burmese wouldn't qualify anyway as they get their LA visas based on unskilled labor.

If the Burmese want to manufacture cars, they will need to wait until some car maker decides to open some manufacturing plants over there, which judging by how fast the economy is opening may happen sooner than you might think.

[jackinthebox]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Did you get lost reading the report? It was published by a The Malaysian Insider.

At first read I thought ist was "Reichsmark"....

[ChrisY1]

More vehicle builders in Thailand will likely ensure the 200%--300% duty "protection" will remain for imported vehicles....

[tomyummer]

Let's hope VW invests some money in the local market themselves. Get a good dealership network with great aftersales service please!

[ignis]

1.4 lt petrol engines.. ?

would have thought that the VW 'UP' would have been better, now they have 5 doors + have CNG models both a must for Thais

[wilcopops]

Where is the plant going to be? I don't seem to be able to find it at a quick glance.

VW are soon going to be challenging Toyota as the world's number one car maker, so this will be a good foothold in S.E. Asia......to compete with the burgeoning Chinese industry. I believe VW are not happy about producing in China

[carstenp]

For now its just a rumor but let's see today when The Thai government is expected to grant Volkswagen approval for the plant on Tuesday

Here from a a site http://articles.economictimes.indiatimes.com/2014-09-06/news/53627617_1_passat-volkswagen-plans-thai-plant

A Volkswagen spokesman declined to comment on the report.

Sources familiar with the matter told Reuters in April the company had applied to build its first plant in Thailand, seeking to take advantage of tax breaks that had already attracted investment from Ford and General Motors.

Volkswagen already produces its Passat, Polo and Jetta models in Malaysia in conjunction with a local partner, while a new plant in Indonesia will take advantage of growing demand there.

VW Chief Executive Martin Winterkorn has repeatedly said that his company needed to expand its presence in southeast Asia if it is to achieve its goal of unseating Toyota as global market leader.

[mike324]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Which paper published this article? Read the OP again.

Yes, exactly, a German newspaper, and they announced the amount in RM = Ringgit Malay ( 1 EUR = 4 RM), ist's not "Reichsmark"

Umm, the links is from a Malaysian news source that is quoting the original German source hence they would quote Malay Ringgit since their target reader are Malaysians... lost in translation?

Why are people so pessimistic about VW setting up a plant here?

[carstenp]

Did they get lost on their map, or what else is the reason for announcing the amount of investment in Malay Ringgit?

Which paper published this article? Read the OP again.

Yes, exactly, a German newspaper, and they announced the amount in RM = Ringgit Malay ( 1 EUR = 4 RM), ist's not "Reichsmark"

Umm, the links is from a Malaysian news source that is quoting the original German source hence they would quote Malay Ringgit since their target reader are Malaysians... lost in translation?

Why are people so pessimistic about VW setting up a plant here?

Not all are. I think it's good for Thailand and maybe even better for vw .

It seems for me a lot tv members hate every good for Thailand and still living here. There is always something wrong , instead of seeing thing from a positive view

[KhunBENQ]

Oh yes, so many useless comments.

VW has not decided to invest in a military dictatorship.

Decisions being taken long before.

And the dictator knows very well that he has to ensure investor confidence and he will.

Not the slightest indication that foreign investment is hindered.

There is still no source describing where the location will be. But to me it seems quite clear that it will be somewhere on the eastern seaboard not too far from Laem Chabang.

Just read a German source stating its 1.5 h south of Bangkok. That matches.

Mercedes Benz and BMW will increase the capacity of their existing facilities.

[lostinisaan]

Oh yes, so many useless comments.

VW has not decided to invest in a military dictatorship.

Decisions being taken long before.

And the dictator knows very well that he has to ensure investor confidence and he will.

Not the slightest indication that foreign investment is hindered.

There is still no source describing where the location will be. But to me it seems quite clear that it will be somewhere on the eastern seaboard not too far from Laem Chabang.

Just read a German source stating its 1.5 h south of Bangkok. That matches.

Mercedes Benz and BMW will increase the capacity of their existing facilities.

I agree, must be this port. Damn Germans with their nice cars and other useful technology... ..