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Volkswagen to build assembly plant in Indonesia?

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Volkswagen LogoJakarta’s Investor Daily reported that Volkswagen will be building an assembly plant in Indonesia next year to assemble a small car with an engine size of less than 1.5 liters as well as a van. The newspaper reported this citing an Indonesian industry ministry director general Budhi Dharmadi, but could not contact Volkswagen officials for comments. I wonder if this is true – and if it is – how will affect the Proton-Volkswagen talks?

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10 Comments »

  1. zanggief said,

    July 31, 2007 @ 9:00 am

    if it is true, then our proton may face huge challenge as the chance to form a joint venture with vw..

  2. bobdbilder said,

    July 31, 2007 @ 9:41 am

    I have seen this in the news, twice starting from Feb this year. VW’s too big a business. It needs to be where the growth is. Shareholders would be asking for the growth. And growth is in Asia. The keyword here is ‘Emerging Markets’. A factory in this region would be for the less compliant market. No EuroNCAP, No CO2 emission restrictions, lots of people (bigger market volume potential) with + increase in GDP, and ahem..less restrictive labour laws and er… absence of trade unions.

    Any MNC would have spent at least 2 years in study and gone through various approvals before making this decision. Proper management nowadays tend to keep that period as short as possible. So the decision to start down this road happened way before the Proton talks.

  3. azrai said,

    July 31, 2007 @ 11:11 am

    We already have Europestar right?

  4. BanyakMasukWorkshop said,

    July 31, 2007 @ 3:08 pm

    if VW officials are not contactable to verify the news, it could mean its

    a) true or
    b) not confirmed

  5. proton.GL.. said,

    July 31, 2007 @ 3:29 pm

    last time, heard proton plant in indon

  6. LittleFire85 said,

    July 31, 2007 @ 7:21 pm

    Maybe using Proton plant in Indonesia?

  7. szw said,

    July 31, 2007 @ 8:24 pm

    when the deal will be close ?

  8. mystvearn said,

    July 31, 2007 @ 8:48 pm

    says “VW will build their own plant”,so P1 has lots to loose from this.

  9. ob8 said,

    August 1, 2007 @ 9:16 am

    i think vw is playing tarik tali with proton and msia gov. they know p1 and gov will hear about the news. in my kampung it is called ‘gertak’. some how it will affect the discsn. it will change the status quo maybe.

  10. Japan and Indonesia sign free trade agreement said,

    August 21, 2007 @ 2:38 pm

    [...] Posts: JMEPA: The reason Volkswagen wants Proton? Cheaper Japanese vehicles but with a condition? Volkswagen to build assembly plant in Indonesia? Volkswagen looking at Indonesia [...]

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