VW to set up car plant in Indonesia

Source: Agencies | May 12, 2009, Tuesday |

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GERMAN car maker Volkswagen AG said yesterday that it had signed an agreement to set up an assembly plant in Jakarta with Indonesian partner Indomobil.

Volkswagen said Indonesian vehicle assembly operations are to be set up and started this year as a first step toward the long-term development of the Indonesian market. Volkswagen said initial production of several hundred Touran minivans starting this summer will gradually be increased and could include other vehicles.

The auto maker said the plans anticipate an expansion of market share in the region and a broadening of product offerings to include other Volkswagen brands such as Skoda, Audi and Volkswagen commercial vehicles.

"Current trends on world markets clearly show how important the timely development of new growth regions is," said Christian Klinger, a Volkswagen executive.

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VW to set up car plant in Indonesia

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