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Volkswagen applies to set up first Thai auto unit: report
April 1, 2014 / 11:43 PM / 4 years ago

Volkswagen applies to set up first Thai auto unit: report

(Reuters) - German carmaker Volkswagen AG (VOWG_p.DE) has applied to set up its first plant in Thailand to help narrow the gap with Toyota Motor Corp (7203.T), Bloomberg reported late Tuesday citing people familiar with the matter.

A worker dusts a Volkswagen Passat Blue Motion Concept as visitors look on during the North American International Auto Show in Detroit, Michigan January 15, 2014. REUTERS/Joshua Lott

The manufacturer is seeking to participate in a government program offering tax exemptions for automakers investing at least 6.5 billion Thai baht ($200 million) in local manufacturing, the media service ,was pending.

Carmakers had until March 31 to apply for the program which includes vehicle assembly, components and engine production, according to a ministry statement from October.

People told Bloomberg that Volkswagen has not made a final decision on producing vehicles in Thailand as the exact terms and conditions may still change.

Volkswagen could not be reached for a comment outside of normal business hours.

Volkswagen sees a “strong market opportunity” in southeast Asia, Hans Dieter Poetsch, chief financial officer of the multinational automaker said in a presentation published on the company’s website last week.

Reporting by Aashika Jain in Bangalore; Editing by Richard Chang

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