“We want to strengthen in South-East Asia,” a company spokesman said at Volkswagen’s Wolfsburg head office in Germany, hours after a trade magazine reported Volkswagen was competing for a Bangkok tax break for carmakers. Auto Motor Sport said VW, Tata of India and Japanese makers Toyota and Mitsubishi were also seeking the Thai government’s incentive.
To qualify for the tax benefit, one of the makers must produce at least 100,000 vehicles annually at its new Thai plant and the fuel economy of the cars must not exceed 5 liters of petrol per 100 kilometers. Volkswagen said it was considering whether to invest about €600 million ($870 million) in Thailand, but a decision had not been taken yet. Talks between Proton and Volkswagen collapsed in November when Kuala Lumpur decided the state-controlled carmaker had prospects of returning to profit alone and did not need a big brother as an equity investor. (m&c.com)
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