volkswagen production

Volkswagen has finally received the go-ahead from Thailand’s government to build a manufacturing plant near Bangkok, Reuters reports. A VW spokesperson has told the news agency that the carmaker will now assess the situation, and that no firm decision has been made yet on whether to build the factory.

Previous reports indicate that the one-billion euro (RM4.1 billion) plant could produce up to 300,000 vehicles a year at full capacity, and will build 1.4 litre petrol engined cars. If the latter is true, then the investment may not fall under the Eco Car Phase 2 programme as previously speculated, because the scheme requires (for petrol) engines displacing 1.3 litres and under.

But the German carmaker has wanted to do this for the longest time – we reported its intention as early as 2008, before it applied to set up a Thai plant early last year.

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