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Volkswagen to open plant in Thailand

German carmaker Volkswagen AG has been given the green light to invest in a production plant in Thailand, a move for expanding manufactures in the region after the ASEAN community is formed in 2015.
German carmaker Volkswagen AG has been given the green light to investin a production plant in Thailand, a move for expanding manufactures inthe region after the ASEAN community is formed in 2015.

Theinvestment which is under Thailand’s Eco2 programme would secure tax andcustoms advantages for Volkswagen if it builds fuel efficient cars. Theplant though needs to produce more than 100,000 vehicles and to starsfunctioning by 2019.

Volkswagen spokesman for productionChristoph Adomat was quoted by Bangkok Post newspaper as saying that thecompany was evaluating its options in Southeast Asia, but no concretedeal had been finalised.

However, Volkswagen CEO MartinWinterkorn has said that the company needed to expand its presence inSoutheast Asia if it wants to achieve its goal of taking Toyota’s numberone spot as the global market leader, according to a German newspaper.

Thailandis trying to attract more carmakers with tax and duty exemptions.Currently most manufacturers in the country are Japanese brands,including Volkswagen rival Toyota.-VNA

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