Automotive News

Shanghai, July 6 (Gasgoo.com) Volkswagen AG's Taiwan company said yesterday that the German auto giant plans to assemble some of its cars in Taiwan by setting up an assembly plant there on its own, China Post reported yesterday.

Volkswagen Taiwan has denied local news reports that Volkswagen could link up with Taiwan's China Motor Co. (CMC) for a contract of the assembly operation, but added that any relevant investment plan is still under evaluation.

Meanwhile, CMC also clarified yesterday that the company has not come to any agreement with Volkswagen, adding that Volkswagen production staff paid a routine visit to CMC's production lines late last month.

Volkswagen plans to spend 1 billion to 5 billion Taiwan dollars (31 million to 156 million US dollars) on the plant, which would assemble at least 100,000 cars annually, according to a report by The Commercial Times.

Taiwan's officials said the leading global automaker's investment plans on the island indicates the positive effect of the newly signed cross-Taiwan Strait economic cooperation framework agreement (ECFA), which will bring tariff reductions or exemptions to some Taiwan-made exports to mainland China.