Volkswagen may build car assembly plant in Taiwan
- Source: Gasgoo
- [17:36 June 17 2010]
- Comments
German auto giant Volkswagen AG will likely build an assembly plant in Taiwan to produce cars for the island and export, Taiwan media reported earlier this week, citing the island's top administrator.
Wu Den-yi, Head of Taiwan's Executive Yuan, said on Monday that a senior executive of Volkswagen, the largest European automaker, met with him last week for a second time on the company's plans to set up a plant in Taiwan. Executives from the carmaker will visit Taiwan later this month to pick a site for the plant, he added.
The island's top administrator said the leading global automaker's investment plans indicates the positive effect of the soon-to-be-signed cross-Taiwan Strait economic cooperation framework agreement (ECFA), which will bring tariff reductions or exemptions to some Taiwan-made exports to mainland China.
Although Wu did not name the carmaker, Taiwan's media cited a trade official as identifying the company as Volkswagen. The official said that if everything goes smoothly, Volkswagen will build the car assembly plant by year end in Changpin Industrial Park in Changhwa County, west Taiwan.
Volkswagen plans to spend 1 billion to 5 billion Taiwan dollars ($31 million to $156 million) on the plant, which would assemble at least 100,000 cars annually, according to a report by The Commercial Times.
"Taiwan has good technology in making auto parts, has good management skills and has law and order. Cars made in Taiwan will be sold to the United States and South-East Asian nations," Wu said.
