Paul Tan's Automotive Industry News

Volkswagen Group to build more new models outside Germany to reduce costs

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Like any car manufacturer with maintaining profitability in their mind, Volkswagen is moving production for certain models out of their home country of Germany. The Volkswagen Up! will be built in 2011 in its Slovakia plant, and in the same year the compact Audi Q3 SUV will begin assembly at SEAT’s plant in Spain. The Slovakia plant currently also builds the Audi Q7, the Volkswagen Touareg and the Porsche Cayenne, so the Up! (Lupo?) should help fill up the capacity as the demand for these SUVs drop in this bad economy.

Audi Q3

Unlike the UAW, the worker unions accept that during these troubled times where everyone is taking a hit, they also have to reduce their standards of living – at least they get to keep a job! Because the 13,000 workers at the plant agreed to accept wage scale adjustments and possible pay cuts, the SEAT plant won the Q3 job, otherwise it could have to a number of other plants that the Volkswagen Group has such as Skoda’s Czech Republic plant. In turn, Audi will invest 300 million Euros in the plant to increase annual capacity up to 80,000 units.

7 Comments »

  1. a18 said,

    May 12, 2009 @ 11:05 am

    when it reach here in Malaysia, it doesn’t really matter much as our tax is all time high….

    but it would definately benefits other regions.

  2. longjaafar said,

    May 12, 2009 @ 11:32 am

    VW has announced the opening of an assembly plant in Indonesia, mainly to assemble vans, which sells very well there. Who knows, they may also start assembling Golfs and Passats and Jettas etc, which will then be exported to Malaysia at much cheaper prices than what we have to pay now.
    They are downsizing many dealerships in Malaysia, due to weak sales, but if they get them from Indonesia, I’m quite sure the brand will be very popular with Malaysians.

  3. nabill said,

    May 12, 2009 @ 11:49 am

    cmon VW , tanjung Malim waiting !

  4. Cross Polo said,

    May 12, 2009 @ 1:32 pm

    [quote comment="237682"]VW has announced the opening of an assembly plant in Indonesia, mainly to assemble vans, which sells very well there. Who knows, they may also start assembling Golfs and Passats and Jettas etc, which will then be exported to Malaysia at much cheaper prices than what we have to pay now.
    They are downsizing many dealerships in Malaysia, due to weak sales, but if they get them from Indonesia, I’m quite sure the brand will be very popular with Malaysians.[/quote]
    Actually VW want to assamble that VW superstar in malaysia coz the cost assamble & produce are more cheap here then other country. Even they want TM assamble plant for them used but proton also need the plant for Gen2 assambly. However i heard that VW & Proton want do another talk on term but not very sure what. so we look & see first since new proton platform are very suitable for most passenger car. May be VW want calobrate for this new platform. how’s knows….. :)

  5. longjaafar said,

    May 12, 2009 @ 3:24 pm

    Is there a VW Superstar?

  6. epol said,

    May 12, 2009 @ 4:08 pm

    good.. good … can we have rejected VW in bandung factory outlet like other brand as well? then i can fly there, while my wife shopping for handbag, i can shop for car.. kekekekeke.

  7. Cross Polo said,

    May 12, 2009 @ 5:50 pm

    [quote comment="237763"]Is there a VW Superstar?[/quote]
    Golf, Passat & Jetta. VW Superstar.

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