Volkswagen has received approval from authorities in Thailand to build a vehicle assembly plant near Bangkok for fuel efficient cars. However, as the announcement comes after months of delays, a VW spokesman said the automaker hasn’t made a decision yet whether to build the factory.
The representative confirmed to Reuters that the company had received the green light for the plant, but said VW now needs to assess the situation before making a decision. The spokesman didn’t provide details about any future Thai plant.
Previous reports said VW aimed to invest €1 billion ($1.1 billion) in the new plant to build 1.4-liter petrol engine cars. The estimated maximum annual capacity of the new facility is up to 300,000 vehicles per year.
VW is interested in building a plant in Thailand because it wants to take advantage of tax breaks that had already attracted investment from rivals including Ford and General Motors to the southeastern Asian country.
Volkswagen’s presence in the region includes a joint venture in Malaysia with a local partner which builds Passat, Polo and Jetta models. The company will also expand in Indonesia, where a new plant will take advantage of growing demand in the country.
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