Gasgoo.com (Shanghai February 15) - German automobile giant Volkswagen AG has decided to abandon its plans to construct a factory in Taiwan, an anonymous source told the China Times today. The decision was reportedly made because Taiwan's taxation policies are less lenient than neighboring areas.
According to local media reports, VW was preparing to invest NT$10 billion ($341.2m) to construct a new factory following the signing of cross-Strait trade agreements. However, those plans seem to have been put to a halt.
Taiwan's automobile industry dwarfs that of the mainland, with only little more than 320,000 vehicles sold last year.
