July 2 (Bloomberg) -- Volkswagen AG, Europe’s largest automaker, will spend $140 million in the next two years to build its first factory in Indonesia, where economic growth is helping boost demand.
The automaker plans to build a factory that can make 50,000 Touran multi-purpose vehicles a year, Muhammad Lutfi, head of Indonesia’s Investment Coordinating Board, said in an interview in Jakarta today. The government will provide tax incentives to Volkswagen, he said without elaborating.
Making-multi purpose vehicles in Indonesia is 30 percent cheaper than in other Southeast Asian nations because of government tax breaks, said Lutfi. Wolfsburg, Germany-based Volkswagen is also expanding in China and India as economic growth in Asia helps more people to buy automobiles while recession damps demand in Europe and in the U.S.
“It’s important, it’s Volkswagen, a global brand making it in the country,” Lutfi said. Read more here.
The above is for you Khazanah Nasional! I wonder if Proton is bringing in $140 million dollars in investment. Khazanah Nasional is the largest shareholder in Proton Holdings and was the sticky party responsible for the sudden collapse of VW-Proton merger talks last year. Understandably, VW's Martin Winterkorn was said to be very upset at being falsely lead to believe that the negotiations were making positive improvement. The company have wasted a good 2 years at least, not to mention other time and travel cost for its executives. VW quickly packed up and the deal with Indonesia was announced less than 1 year later. Khazanah Nasional is a Malaysian state owned investment body, much like Singapore's own Temasek Holdings. Of course, the main difference is that the tiny little island owned state investment vehicle is run by some of the best brains in the world.
Bloomberg also suggested that VW will invest 550 million euros ($776 million) with a local partner to expand a factory in the country (I suppose the budget is for subsequent expansion).
A common Malaysian joke is that at the rate this country is being managed, Indonesians will be hiring Malaysian domestic maids pretty soon, rather than the other way around.
The current Mk5 Golf based Touran facelift.
Mk6 Golf based Touran, rumoured to be launched by end 2009.
Related link :
VW to open plant in Indonesia
The automaker plans to build a factory that can make 50,000 Touran multi-purpose vehicles a year, Muhammad Lutfi, head of Indonesia’s Investment Coordinating Board, said in an interview in Jakarta today. The government will provide tax incentives to Volkswagen, he said without elaborating.
Making-multi purpose vehicles in Indonesia is 30 percent cheaper than in other Southeast Asian nations because of government tax breaks, said Lutfi. Wolfsburg, Germany-based Volkswagen is also expanding in China and India as economic growth in Asia helps more people to buy automobiles while recession damps demand in Europe and in the U.S.
“It’s important, it’s Volkswagen, a global brand making it in the country,” Lutfi said. Read more here.
The above is for you Khazanah Nasional! I wonder if Proton is bringing in $140 million dollars in investment. Khazanah Nasional is the largest shareholder in Proton Holdings and was the sticky party responsible for the sudden collapse of VW-Proton merger talks last year. Understandably, VW's Martin Winterkorn was said to be very upset at being falsely lead to believe that the negotiations were making positive improvement. The company have wasted a good 2 years at least, not to mention other time and travel cost for its executives. VW quickly packed up and the deal with Indonesia was announced less than 1 year later. Khazanah Nasional is a Malaysian state owned investment body, much like Singapore's own Temasek Holdings. Of course, the main difference is that the tiny little island owned state investment vehicle is run by some of the best brains in the world.
Bloomberg also suggested that VW will invest 550 million euros ($776 million) with a local partner to expand a factory in the country (I suppose the budget is for subsequent expansion).
A common Malaysian joke is that at the rate this country is being managed, Indonesians will be hiring Malaysian domestic maids pretty soon, rather than the other way around.
The current Mk5 Golf based Touran facelift.
Mk6 Golf based Touran, rumoured to be launched by end 2009.
Related link :
VW to open plant in Indonesia
1 comments:
Can't agree more. BTW, the joke was very good.
P/S: Glad to see this blog new update pace. Keep up the good work.
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