Volkswagen is considering joining Suzuki’s eco-car project in Thailand following the strategic alliance announced between the two companies at the end of last year.

Volkswagen acquired a 20% stake in Suzuki at the end of 2009, while Suzuki invested half of the funds received in Volkswagen shares.

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A source at the Thai Board of Investment (BOI) said the two companies are looking to share production at Suzuki’s THB 7.5 billion small-car plant, which is scheduled to begin operations in early 2012 under the Thai government’s eco-car programme.

Thailand’s growing importance as a South-East Asia vehicle manufacturing hub has been boosted by the Thai government’s incentives for the manufacture of eco-friendly cars in Thailand.

Tony Pugliese

GlobalData Strategic Intelligence

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