The Volkswagen Group is set to make a final decision soon on whether to manufacture automobiles in Taiwan, industry sources said Oct. 24.
Taikoo Motors Ltd., the exclusive distributor of Volkswagen vehicles in Taiwan, said the German automobile manufacturer’s preliminary plan is to contract Yulon Motors Co. Ltd. to assemble two models, including Volkswagen’s best-selling Golf, at its Sanyi plant in Miaoli County. However, the plan has yet to be finalized, Taikoo officials pointed out.
Volkswagen has also been in contact with several Taiwan automobile components manufacturers on making parts for the locally produced vehicles under the plan, the sources said.
Sales of Volkswagen vehicles are expected to reach 8,000 in Taiwan this year; the figure could exceed 10,000 in 2011, according to sources.
Once the plan is finalized, made-in-Taiwan Volkswagen automobiles could hit the local market by next year at the earliest. The added business is expected to help Yulon’s annual production top 80,000 vehicles.
As the price of directly imported vehicles is about 1.6 times that of locally assembled foreign brands in Taiwan, the establishment of a production base on the island could help Volkswagen double its sales here.
Industry analysts said Volkswagen vehicles produced in Taiwan could supply the mainland Chinese market and help the company expand its exports to Southeast Asian nations. (SB)