Volkswagen is close finalising an agreement to build a new car assembly plant in Thailand, according to reports in German media.
As just-auto.com has previously reported, negotiations have been ongoing between the German automaker and the Thai government over a car plant investment, according to Thai sources close to the deal.
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Political turmoil in Thailand and the sharp deterioration in the country’s economy and vehicle market are understood to have delayed a final decision by Volkswagen this year.
The Thai military government, which seized power in May, is now “urgently” looking to finalise a deal to help shore up flagging foreign direct investment.
Thai sources had previously indicated that Volkswagen wants to participate in Phase II of the country’s Eco-Car incentive programme, as well as building other vehicles for sale across south-east Asia.
Some VW cars are currently assembled in Malaysia at DRB-HICOM Bhd’s factory in Pekan, Pahang.
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