The two automakers will probably join forces to develop a green vehicle in Thailand, as Bangkok Post reports, citing a senior official at the country’s the Board of Investment (BoI).
Volkswagen has applied for promotional privileges from BoI, but its request was delayed due to the fact that the agency needed additional information on the project.
At the same time, Suzuki confirmed the fact that it will invest $232 million in its Thailand eco vehicle joint venture. This is planned to start producing eco-friendly cars equipped with 1.3 liter gasoline engines starting from early 2012, with an initial annual output capacity of 10,000 units. The production should reach the 100,000 units per year mark by the fifth year of operations, as this is one of the BoI's requirements.
An industry source told the aforementioned publication that the German automotive producer has changed its plans and now wants to co-develop the small eco-friendly cars with Suzuki. This development would allow VW to benefit from the Japanese carmaker’s small cars expertise and also use the latter’s strong market position in Southeast Asia.
The source said that the two sides are currently negotiating on the matter and it is not known if they will eventually reach an agreement or will develop green vehicles separately. However, collaboration in areas such as supply chain, parts procurement, common use of production sites and distribution network is possible regardless of the negotiation’s result.
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