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May 13, 2009

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Volkswagen agrees vehicle assembly in Indonesia

Global growth strategy extended to ASEAN region


Volkswagen AG is expanding its commitment in Southeast Asia as part of its 2018 growth strategy. In cooperation with the Indonesian partner company “Indomobil”, local vehicle assembly operations are to be set up as a first step towards the long-term development of ASEAN markets.

An agreement on assembling Volkswagen models in the capital city of Jakarta has already been signed. "Current trends on world markets clearly show how important the timely development of new growth regions is," Christian Klingler, member of the Volkswagen Passenger Cars board of management responsible for sales and marketing, commented. "The only way to secure global growth and safeguard jobs is to focus on tomorrow’s markets today," Klingler added.

The goal of the partnership with "Indomobil" is to develop the Indonesian automobile market with locally-built vehicles. Production of partly-assembled Volkswagen brand models will already commence this year.

Initial production capacity from summer 2009 will be several hundred Touran and will subsequently be steadily increased. In a further step, CKD production of Group vehicles from 2012 is conceivable. The plans envisage expanding market share in the ASEAN region beyond Indonesia, thus establishing Volkswagen throughout the region.

It is intended to broaden the product offering to include further vehicles from the Volkswagen, Skoda, Audi and Volkswagen Commercial Vehicles brands.

(May 11, 2009)

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