[lbo-talk] Volkswagen to invest $ 1 bn in India

uvj at vsnl.com uvj at vsnl.com
Mon May 30 16:43:14 PDT 2005


The Economic Times

SATURDAY, MAY 07, 2005

Volkswagen to set up base in Vizag

PTI

HYDERABAD: Overcoming initial apprehensions, German auto major Volkswagen has decided to set up its manufacturing plant at the port city of Visakhapatnam in Andhra Pradesh.

Disclosing this at a press conference here today, Major Industries Minister B Satyanarayana said a team of officials from the European car major would visit the state later this month to discuss matters relating to location of the car plant and its ancillary units.

"Volkswagen officials have scotched speculation that their company is looking at other states to set up the plant. Initially, Visakhapatnam was to be an assembling unit with parts coming from their manufacturing facilities around the world. Now it has been decided that it is going to be a full-fledged manufacturing unit and ancillary units", Satyanarayana said on his return from Germany where he visited Volkswagen headquarters.

"We expect everything to be crystallised in another 30-40 days," he said.

However, he declined to specify the time-frame for grounding the car plant. The expected investment would be in the range Rs 4,000 crore to Rs 5,000 crore.

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