Volkswagen Group is planning to build a plant in Indonesia

Article by Christian Andrei, on August 22, 2013

In an attempt to boost its worldwide sales even further, Volkswagen Group is planning to build a plant in Indonesia. According to an Indonesian government minister, the German manufacturer is expected to announce later this year an initial investment of 200 million euros ($268 million) to build an automobile plant in the country.

Industry minister Mohamad Hidayat told the reporters that Volkswagen Group will build the new car plant in Cikampek, West Java but he declined to say how many vehicles will produce. Volkswagen will announce the plan in November or December, but declined to say what sum of money will be invested. The 200 million euro investment is a personal estimate of the industry minister and not the official number from the company.

Volkswagen is planning to expand its presence in South East Asian markets in order to become the largest carmaker in the world and overtake GM and Toyota. For those who don’t know, Volkswagen aims to sell 10 million cars per year by 2018.

Back in 2012 the German group managed to sell 9.0 million units and for the moment is on the third place in the race to become the largest manufacturer in the world. GM sold 9.29 million vehicles in 2012, while Toyota is the leader with 9.75 million vehicles sold. [source: automotive news - sub. required]

Topics: vw, indonesia, plant

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