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VW plans to set up factory in Thailand

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Volkswagen AG, Europe’s largest automaker, has applied to set up its first car plant in Thailand to help narrow the gap with Toyota Motor Corp in Southeast Asia, people familiar with the matter said. 

Employees do a quality inspection on a Volkswagen AG Jetta vehicle at the company's assembly plant in Puebla, Mexico. The Germany manufacturer plans to set up its factory in Thailand. (Bloomberg photo)

The Wolfsburg, Germany-based manufacturer is seeking to participate in a government programme offering tax exemptions for automakers investing at least 6.5 billion baht (US$200 million) in local manufacturing, said the people, who asked not to be identified because a final decision has not been made.

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