Volkswagen might revise plans for Thai assembly plant

vw production

In April last year, it was reported that Volkswagen had applied to set up its first assembly plant in Thailand. It was said that the German automaker was seeking to participate in a government programme that offers tax exemptions for carmakers investing at least 6.5 billion baht (RM770 million) in local manufacturing.

In February this year, the company received the go-ahead from the Thai government to build a manufacturing plant near Bangkok. Despite obtaining the approval, VW said it was assessing the situation, and that no firm decision had yet been made on whether to build the factory.

Now, the Thai plant might not happen, given the far-ranging issues and fall-out the automaker is facing from its diesel emissions scandal. In addressing employees at a works meeting in Wolfsburg last week, new Volkswagen CEO Matthias Müller had stated that the automaker had initiated a further critical review of all planned investments, and that anything that wasn’t absolutely necessary was to be cancelled or postponed.

vw paint shop robots

The planned Thai factory may be one such casualty. The Nikkei reports that the automaker was poised to invest 31.4 billion baht (RM3.77 billion) in the new plant, which was expected to begin operations in 2019. The publication reveals that, according to company sources, the plan may now have to be revised or shelved. It added that a government official has expressed concerns that the plan could be canceled or scaled back.

Initial reports had indicated that the scope offered by the planned facility was in line with the second phase of the country’s Eco Car programme, though there was also mention that it was to build 1.4 litre petrol-engined cars, which didn’t quite fit the scheme’s requirements for petrol engines to have a displacement of 1.3 litres and under.

The requirements in Phase 2 of the Thai Eco Car programme include (for the vehicle) a fuel economy under 4.3 litres per 100 km, CO2 emissions under 100 grams per km, engines displacing 1.3 litres and under (petrol) or 1.5 litres and under (diesel), along with Euro 5, R94 and R95 compliance.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • seancorr (Member) on Oct 16, 2015 at 12:37 pm

    Looks like they will have to make do with what they have at the moment in the SEA region. Other manufacturers should be prepared to deal with the new VW emerging from the ashes as I believe they will come out a lot stronger than before as its impossible for them to go under with the backing of some very powerful people.

    Like or Dislike: Thumb up 4 Thumb down 3
    • Same L0rrr on Oct 16, 2015 at 3:03 pm

      Buy Proton Saga better than this junk Volkwagen.. Same design!

      Like or Dislike: Thumb up 4 Thumb down 6
  • Same L0rrrr on Oct 16, 2015 at 2:02 pm

    It is common to revise all investment during tough time. Not like our almighty car maker, the tiny Iriz already not Euro 5 compliant, still waste money test it in Europe winter days. Even before that, Preve and Suprima S already sales so bad, still die die launch Iriz, end up no one bothering also.

    Like or Dislike: Thumb up 5 Thumb down 6
    • Not a single sen wasted. Winter testing was conducted by Bosch. Paid by them as part of homologation of their ESC & TC system.

      Like or Dislike: Thumb up 2 Thumb down 0
  • If they had wanted to come here, then deciding to pull out now, so siapa salah ni?

    Like or Dislike: Thumb up 0 Thumb down 1
    • They pulling out is most probably due to the amount of fines that is going to happen with their diesel issue.

      However, rest assure that historically, most investors pull out of Malaysia is due to poor policies, poor government planning and bumiputra policy on ownership.

      Like or Dislike: Thumb up 4 Thumb down 0
      • So meaning, if same situation, same official reason but in rakyat mind is, if pull out of Tomyam then its due to financial reasons. But if pull out of MY, its cuz kroni,korup, Najib, Rosmah, BN, Proton? Now I understandings.

        Like or Dislike: Thumb up 4 Thumb down 0

Add a comment