Volkswagen mulls $200m factory in Philippines

Volkswagen mulls $200m factory in Philippines

A Filipino polishes a 1951 model of legendary German Volkswagen Beetle on display at the 11th Manila International Auto Show, in Pasay City April 9. The German automaker may be ready to start building new Beetles and other models in the Philippines. (EPA photo)
A Filipino polishes a 1951 model of legendary German Volkswagen Beetle on display at the 11th Manila International Auto Show, in Pasay City April 9. The German automaker may be ready to start building new Beetles and other models in the Philippines. (EPA photo)

MANILA — German carmaker Volkswagen AG is planning to invest as much as US$200-million in an assembly plant in the Philippines in a push to create a regional production hub, news reports said Friday.

The company is looking to propose to government setting up a completely knocked-down (CKD) facility -- using a set of parts manufactured outside the Philippines and imported to the country for assembly -- before getting into manufacturing, said Volkswagen Philippines president and chief executive John Philip Orbeta.

"If they will allow us, Phase 1 of our CKD proposal ... will be about $40-50 million," he was quoted as saying by the Manila Standard Today newspaper. "If we can get to Phase 2, we're ready to spend as much as $150 million on top of the first investment."

Mr Orbeta said a task force was almost done with a feasibility study on the project.

Volkswagen currently imports all the vehicles it sells in the Philippines. In the first quarter of this year, an average of 80 units was sold, Mr Orbeta said. Last year, the company sold a total of 600 vehicles in the country.

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