Volkswagen LogoAccording to Thai newspaper The Nation, Volkswagen is expected to meet the Thai Industry Minister Suwit Khunkitti and the Board of Investment (BoI) before July 2008 to finalise its proposed eco-car project investment in Thailand.

Volkswagen’s intended investment in Thailad is estimated to be valued at a total of RM2.52 billion, much higher than the other eco-car proposals as Volkswagen has no major presence in Thailand at the moment, so it would involve setting up things from scratch, including parts sourcing.

The Germans are reported to be reconsidering its eco-car investment as financially it might not make sense anymore following the Thai government’s new push for E85-fueled cars, which now enjoy significant tax reductions.

Whichever way Volkswagen goes, what’s pretty much certain is that they’re setting up base in Thailand for the region, and future Volkswagen Malaysia cars will most likely come from the new production base there.